An initial public offering of a five-year senior unsecured green bond raised S$50 million (US $37 million) for Singapore-based startup Apeiron Bioenergy.
The company claimed that the fundraising represents the first SGD bond issuance in Asia with a bioenergy focus. After Apeiron claimed to have received interest from institutional and strategic investors, the deal was oversubscribed.
The lead manager of the bond issuance was HSBC.
Used cooking oil, tallow, and palm oil mill effluent are just a few of the food and agricultural wastes that Apeiron collects and transforms into biodiesel.
The money raised from the sale of the bonds will be put to use for general working capital as well as capital improvements to expand Apeiron Bioenergy’s network of used cooking oil collection and processing sites.
The business plans to use its clean waste-based feedstock made from used cooking oil to take advantage of the rising global demand for renewable diesel, such as sustainable aviation fuel. Global renewable diesel capacity is predicted by Research and Markets to increase by a compound annual growth rate of 21.33% from 2020 to 14.63 million tons in 2024.
A significant source of feedstock for Apeiron’s biofuel production is used cooking oil, which reduces greenhouse gas emissions significantly. Apeiron intends to consolidate waste-based biofuel feedstocks in the area, positioning itself as a hub for the massive consolidation of such feedstocks by utilizing its extensive supplier network in Asia.
“This transaction highlights our commitment to support growth-stage companies that can facilitate the transition to a carbon-sustainable economy through increasing the availability of low-carbon alternative biofuels,” said Sean Henderson, co-head of debt capital markets at HSBC’s Asia-Pacific operations.
