The Singapore Management University (SMU) has successfully issued a S$150 million Sustainability Bond—the first of its kind by an autonomous university (AU) in Singapore. The proceeds will be used to finance and refinance a range of green and social projects in line with the university’s new Sustainable Financing Framework, developed in collaboration with Oversea-Chinese Banking Corporation Limited (OCBC), which acted as Sole Lead Manager and Bookrunner.
Issued on 28 July 2025 with a coupon rate of 2.022%, the bond will mature on 28 July 2032. It forms a key part of SMU’s broader efforts to align its financial strategy with its institutional commitment to environmental and social responsibility.
“This inaugural Sustainability Bond is more than a financial tool—it reflects our conviction that universities must lead in building a sustainable and inclusive future,” said SMU President Professor Lily Kong. “Marking our 25th anniversary, the issuance signifies our intent to grow with purpose and deliver lasting impact.”
The bond is supported by SMU’s Sustainable Financing Framework, established in June 2025, which sets out criteria for allocating proceeds to projects that deliver clear environmental or social benefits. Eligible areas include green buildings, energy-efficient technologies, sustainable water and waste management, inclusive education programmes, knowledge dissemination initiatives, and mental health support.
SMU’s Senior Vice President (Administration), Mr Lim Boon Wee, described the issuance as a strategic milestone. “This enables us to direct capital towards projects that improve our environmental footprint and drive social outcomes, while maintaining transparency and accountability,” he said.
Moody’s Investors Service issued a Second Party Opinion on the Framework, affirming its alignment with international standards and awarding it a Sustainability Quality Score (SQS2 – Very Good). SMU also retains Moody’s highest credit rating of Aaa, underscoring its financial resilience and strong institutional performance.
Unlike Green Bonds or Sustainability-Linked Bonds previously issued by other Singaporean universities, SMU’s Sustainability Bond includes a dual emphasis on environmental and social impact. A portion of the proceeds will support initiatives that promote inclusive education for students from lower-income backgrounds.
Elaine Lam, Head of Global Corporate Banking at OCBC, praised SMU’s leadership: “This bond issuance reflects SMU’s integration of sustainability into its core mission. By supporting both environmental projects and social equity programmes, SMU is setting an example for future generations.”
