Vena Energy issues inaugural USD325m Green Bond
Vena Energy, one of Asia-Pacific’s leading independent power producers (IPP) and pure renewable energy company, has issued a benchmark USD325 million, five-year 3.133 per cent fixed rate green bond offering (Green Bond) under Regulation S.
This is the first corporate USD Green Bond issuance from a Singapore-based company.
The Green Bond, rated BBB- by Standard & Poor’s and listed on the Singapore Exchange, is issued under Vena Energy’s Euro Medium Term Notes Programme established in November 2019. The Green Bond proceeds will be used to refinance existing corporate loans for the development, construction and operation of Eligible Green Projects in accordance with Vena Energy’s Green Financing Framework, which was established in 2018 to enhance the company’s planning and disclosure practices as well as providing transparency and accountability to all its stakeholders. Vena Energy’s Green Financing Framework has been independently evaluated by Vigeo Eiris and Japan Credit Rating Agency, receiving the highest level of assurance from both agencies.
The Green Bonds issuance was facilitated by Crèdit Agricole CIB, DBS Bank Ltd, ING and MUFG serving as Joint Global Coordinators and Joint Lead Managers. ABN AMRO, Banca IMI, BNP PARIBAS and SMBC Nikko served as Joint Lead Managers. Crèdit Agricole CIB and SMBC Nikko also served as Joint Green Structuring Advisors.
"This is a significant milestone for Vena Energy as we access the international capital markets, and an affirmation of the positive contributions that we have made to the environment and host communities in the Asia-Pacific region,” says Nitin Apte, CEO of Vena Energy. “We are proud of the positive reception from global investors experienced during our roadshows across Asia and Europe, as we reaffirmed our commitment to play a leading role in developing and generating clean renewable energy to accelerate the transition to a low carbon economy across the Asia-Pacific region.”
“DBS is privileged to have worked with Vena Energy for their inaugural bond issue from the very start. This bond ticked many boxes in helping to deepen the Asian bond market further. The first USD corporate green bond out of Singapore, well supported by cashflows from stable clean energy projects and featuring an investment grade rating – this is exactly what the market needed,” says Clifford Lee, Global Head of Fixed Income at DBS Bank Ltd.
“We are very honoured to be involved in the first ever corporate USD Green Bond issuance from a Singapore-headquartered company. The dialogues with a large number of European investors during the roadshow was paramount to the closing of this deal and it is reflected by the numerous European Green investors. We believe this is a watershed moment for Asia as Vena Energy marks the beginning of a green bond wave,” says Ravi Nichani, Executive Director, Debt Origination & Advisory at Crédit Agricole Corporate and Investment Bank.
“Vena Energy’s benchmark USD 2025 bond is truly unique in the Asian EM bond context, offering global bond investors a chance to participate in an investment grade credit that is well-diversified across Asia and backed by high quality contracted revenues. Certainly an outstanding achievement for a best-in-class Asian renewable pure-play,” says Helge Muenkel, Head of Asia-Pacific Global Capital Markets at ING.
“Vena Energy’s inaugural ground-breaking green bond issuance is truly a landmark in paving the way in the fast growing ESG investment space in Asia. It provides investors with an opportunity to invest in the credit of a market leading Asian renewable energy company,” says Augusto King, Head of Debt Capital Markets at MUFG Securities Asia.