SMU launches first sustainability bond to power impactful projects
SMU has become the first autonomous university in Singapore to issue a Sustainability Bond, raising S$150 million to fund initiatives that advance both environmental and social outcomes.
Issued on 28 July 2025 at a 2.022 per cent coupon rate and maturing in 2032, the bond goes beyond conventional green or sustainability-linked instruments by channelling funds into a broader scope of impact. Oversea-Chinese Banking Corporation Limited (OCBC) served as Sole Lead Manager and Bookrunner. The S$150 million sustainability bond was oversubscribed and was allocated to quality institutional investors.
SMU President, Professor Lily Kong, said, “This inaugural Sustainability Bond is more than just a financial instrument — it reflects our belief that universities must play a leading role in building a more sustainable and inclusive future.”
“Guided by our Sustainability Blueprint since 2022 and aligned with the Singapore Green Plan 2030, we aim to shape graduates who are intellectually agile and deeply attuned to the challenges of our time. Launching this bond in our 25th anniversary year feels especially meaningful — it signals our intent to grow with purpose and leave a positive, lasting impact on the communities we serve,” she added.
A framework for sustainable finance
In June 2025, SMU introduced its Sustainable Financing Framework, developed with OCBC as sole sustainability advisor. The Framework establishes rigorous criteria for deploying proceeds toward projects that deliver measurable environmental and social benefits, ranging from green buildings and energy upgrades to programmes supporting mental well‑being, inclusive education, and waste and water management.
It also provides the foundation for SMU to engage in sustainable finance transactions such as green, social and sustainability bonds and loans. It guides SMU’s issuance of sustainable finance-debt instruments to finance or refinance projects and assets that deliver measurable environmental and/or social benefits.
These include green buildings, energy efficiency upgrades, green info communications technology infrastructure, sustainable water, and waste management, as well as programmes that promote inclusive education, knowledge sharing, and mental health and wellbeing.
Mr Lim Boon Wee, SMU’s Senior Vice President, Administration, said, “This bond issuance is a strategic milestone for SMU as we align our financial strategy with our sustainability goals, and channel capital to where it matters most. It enables us to finance infrastructure and initiatives that enhance environmental performance and social impact, while ensuring transparency and accountability to our stakeholders.”
The Framework received a Second Party Opinion from Moody’s Investors Service, earning a Sustainability Quality Score of SQS2 (“Very Good”).
SMU also maintains a Aaa rating by Moody’s, the highest possible rating in assessing creditworthiness, reflecting the University’s robust institutional framework and healthy operating performance.
A broader scope of impact
Unlike Green Bonds, which focus solely on environmental benefits, or Sustainability-Linked Bonds, which are tied to performance targets, SMU’s Sustainability Bond combines environmental innovation with social progress. A portion of the proceeds will support inclusive education programmes for students from low-income families.
“We are excited to strengthen our long-standing partnership with SMU,” said Ms Elaine Lam, Head of Global Corporate Banking, OCBC.
“This first Sustainability Bond by an autonomous university in Singapore speaks to SMU’s leadership in integrating sustainability into its core mission, potentially inspiring its students to become future leaders who advocate for both environmental stewardship and social equity.”
SMU now stands ready to deploy the S$150 million toward initiatives that both protect the environment and elevate social equity. As projects roll out — from campus infrastructure to inclusive education support — transparency and measurable impact will be central.
This bold approach signals SMU’s intention to grow with purpose and meaningful impact, reinforcing its role as a leader in sustainable education finance.
