Sembcorp launches sustainability-linked bond, raises S$675 mn for Asian mkt

The company said net proceeds from the SLB will be used for the purposes of financing the general corporate working capital requirements of Sembcorp and its subsidiaries

Global energy major Sembcorp launched its first Sustainability linked Bonds (SLB) and raised S$675 million. The company it is the first and largest such issuance in the Southeast Asia. 

This also marks the latest phase in the transition to a net-zero future by the company, Sembcorp said in a statement. The SLB issuance was anchored by IFC with an investment of S$150 million. This is the first SLB investment by IFC. 

Unlike traditional green bonds, SLBs involve issuers pledging to improve their performance against tailor-made ESG (environmental, social and governance) targets.

"Sembcorp, through its wholly-owned subsidiary Sembcorp Financial Services Pte. Ltd., priced its