Singtel Partners with UOB and ADDX for Singapore’s Largest FX Digital Bond

Singtel, as part of its commitment to supporting the sustainability and digitalization of the financial ecosystem, today announced the successful pricing of Singapore’s largest digital foreign currency bond.

The five-year, US$100 million Digital Sustainability Bond (SLB) is a partnership between Singtel’s wholly-owned subsidiary, Singtel Group Treasury (SGT), with UOB and ADDX. The digital SLB will be drawn under SGT’s existing S$10 billion euro medium-term note program, guaranteed by Singtel. The SLB will carry a fixed coupon rate in US dollars of 3.56% per annum and will mature on April 27, 2027. The net proceeds of this issue will be used by SGT to finance its ongoing activities. The bond will be issued on April 27, 2022. After hedging, the effective interest rate in Singapore dollars is less than 3% per annum.

The SLB is launched under Olives, Singtel’s sustainable finance program and was issued in accordance with the Singtel Group Sustainability-Linked Bond Framework established on October 14, 2021. The Singtel Group is committed to reducing its absolute emissions by greenhouse gases (Scope 1 and 2 in tCO2e) by 2025, compared to a 2015 baseline. SLB, to additional investments in defined green efforts in an amount equal to at least 0.25% of SLB’s total outstanding principal amount.

Mr. Arthur Lang, Singtel Group Chief Financial Officer, said: “Singtel’s first Digital Sustainability Bond reaffirms our commitment to sustainability and to bringing the benefits of digitalization to all. The direct link between our fundraising efforts and the group’s environmental sustainability goals clearly shows that we take our commitment to sustainability seriously. And through technologies such as blockchain, we hope to pave the way for the democratization of finance, giving a more diverse group of investors the opportunity to participate in Singtel’s growth and supporting the digitization of our financial ecosystem.

Mr. Frederick Chin, Group Head of Wholesale Banking and Markets, UOB, said: “The market is now trending towards asset tokenization and our clients are showing growing interest in digitizing their assets. Singtel’s decision to tokenize its entire US$100 million sustainability bond issue shows that like-minded issuers want to harness the benefits of blockchain technology for greater security and smart contracts for better efficiency. Being at the forefront of providing progressive financial solutions, UOB is committed to working with industry partners such as ADDX to help our corporate clients leverage this space for their fundraising needs and take advantage of the benefits of asset tokenization.

ADDX CEO Ms. Oi-Yee Choo said, “Digital securities are now playing a vital role in climate action. When applied to sustainability bonds and other forms of green financing, digital securities improve the profitability of issuances and encourage more sustainable projects. In the case of advanced sustainable technologies, such as electric vehicles or solar power, digital securities can also help expand access to finance, not only through bonds, but also through private capital or sources of financing. capital risk. As early adopters of digital bonds, Singtel and UOB have demonstrated leadership and a spirit of innovation, and ADDX is privileged to work with them on this transformative transaction.

UOB is the lead manager of the issuance and the entire SLB will be tokenized on the ADDX digital securities exchange. Digital bonds, or token bonds, are issued using blockchain technology and smart contracts to eliminate manual processes at various stages of the security’s lifecycle, including issuance, distribution, custody and post-negotiation service.