Singapore Management University (SMU) issued a S$150 ($111 million) million Sustainability Bond, marking the first by an autonomous university in the country.
Proceeds will finance green infrastructure and inclusive social programmes, guided by SMU’s new Sustainable Financing Framework.
The bond received a top-tier sustainability quality rating from Moody’s, affirming its alignment with global standards.
Singapore Management University (SMU) has successfully raised S$150 million through its inaugural Sustainability Bond, issued on 28 July 2025. The bond carries a coupon rate of 2.022% and matures in July 2032. Oversea-Chinese Banking Corporation Limited (OCBC) acted as the Sole Lead Manager and Bookrunner.
The proceeds are earmarked for financing and refinancing green and social projects under SMU’s Sustainable Financing Framework, established in June 2025. The framework supports initiatives such as green buildings, energy efficiency, sustainable IT infrastructure, waste and water management, and programmes promoting inclusive education, mental health, and knowledge sharing.
“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,” said SMU President Professor Lily Kong. “Launching this bond in our 25th anniversary year feels especially meaningful — it signals our intent to grow with purpose, and to leave a positive, lasting impact on the communities we serve.”
The issuance marks a strategic step for SMU in aligning its financial operations with its 2022 Sustainability Blueprint and the Singapore Green Plan 2030. Developed in collaboration with OCBC, SMU’s Sustainable Financing Framework allows the university to participate in green, social, and sustainability-linked financing while maintaining accountability and transparency.
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“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,” said Mr Lim Boon Wee, SMU’s Senior Vice President, Administration. “It enables us to finance infrastructure and initiatives that enhance environmental performance and social impact.”
The Framework received a Second Party Opinion from Moody’s Investors Service, which rated it with a Sustainability Quality Score of SQS2 – Very Good. Moody’s also affirmed SMU’s Aaa credit rating, its highest level, citing the university’s sound financial and institutional footing.
SMU’s bond is also unique in scope. While other universities in Singapore have issued Green Bonds or Sustainability-Linked Bonds, SMU’s issuance covers both environmental projects and social impact programmes. A portion of the funds will support students from low-income families, advancing inclusive education.
“With our strong track record in guiding clients through their green transition with strategic advisory and targeted financing solutions, we are excited to strengthen our long-standing partnership with SMU by supporting its first Sustainability Bond issuance,” said Ms Elaine Lam, Head of Global Corporate Banking at OCBC. “This bond 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.”
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