Apeiron Bioenergy’s green bond issuance to fund UCO collection

Apeiron Bioenergy has raised SGD50 million (USD37 million) through the landmark issuance of a 5-year senior unsecured green bond guaranteed by Credit Guarantee & Investment Facility (CGIF), a trust fund of the Asian Development Bank, and an ASEAN+3 initiative to develop local currency bond markets.

Founded in 2007, Apeiron Bioenergy is an integrated global player in bioenergy products, spanning from feedstocks to end- and by-products. Headquartered in Singapore, the company operates refineries and collection points across 10 countries.

The green bond was issued at par and bears a coupon rate of 4.487% with HSBC as the sole lead manager.

The proceeds will be applied towards capital expenditure and asset improvement for collection points and pre-treatment facilities of waste-based feedstocks like used cooking oil (UCO) in the Philippines, Thailand, and Vietnam. The remainder will be used for general working capital requirements. 

UCO, one of Apeiron’s primary products, is a major feedstock for renewable biodiesel products like sustainable aviation fuel (SAF). As the SAF market is expected to grow at a compound annual growth rate (CAGR) of 42% in the next decade, the availability of feedstock emerges as a crucial bottleneck. 

The utilisation of proceeds will be guided by Apeiron’s Green Finance Framework endorsed by Sustainalytics, demonstrating the company’s commitment to integrating environmental, social, and governance factors into its operations.

Leveraging Apeiron’s robust network of suppliers across Asia, where the collection of waste-based feedstocks remains relatively untapped, the company is well-positioned to serve as the hub for the mass consolidation of waste-based biofuel feedstocks in the region.

“We are delighted by the overwhelming response to our green bond issuance supported by CGIF, which demonstrates strong investor confidence and our shared mission with the Asian Development Bank. This will allow Apeiron to expand our operations and maintain our position as a leader in the bioenergy sector. Building upon our operational and financial track record, we are fully committed to reducing reliance on fossil fuels and accelerating the growth of green energy,” said Chris Chen, co-founder of Apeiron Bioenergy.

“We are pleased to support Apeiron in its inaugural green bond issuance which will certainly benefit them in diversifying funding sources to support its sustainable growth. The transaction showcases our commitment in promoting debut issuers and green bond issuances in ASEAN+3 region. The successful issuance of this bond also demonstrates market participants’ confidence in CGIF and its guarantee product,” said Hongwei Wang, chief executive officer of CGIF.