Singapore Management University ( SMU ) has completed the issuance of a S$150 million ( US$ 117 million ) sustainability bond, whose proceeds are earmarked for financing and refinancing green and social projects that deliver clear environmental and social benefits, as guided by the university’s newly established sustainable financing framework.

The bond, the first such bond by an autonomous university in Singapore, was issued on July 28 at a coupon rate of 2.022% and will mature on July 28 2032. The sole lead manager and bookrunner for the bond issuance was Oversea-Chinese Banking Corporation ( OCBC ).

The bond is differentiated in the scope of impact. Apart from green initiatives with environmental benefits, the university is committing a portion of the proceeds raised to fund social programmes that promote inclusive education benefitting its students from low-income families. This differs from green bonds ( focusing solely on projects with environmental benefits ) and sustainability-linked bonds ( which are tied to predefined sustainability performance targets only ) previously issued by other universities in Singapore.

In June 2025, the university established a holistic and comprehensive sustainable financing framework – developed in collaboration with OCBC, its sole sustainability adviser – that provides the foundation for SMU to engage in sustainable finance transactions, such as green, social and sustainability bonds and loans.

The framework guides the university’s issuance of sustainable finance debt instruments to finance or refinance projects and assets that deliver measurable environmental or social benefits. These include green buildings, energy efficiency upgrades, green info-communications technology infrastructure, sustainable water and waste management, as well as programmes that promote inclusive education, knowledge sharing, and mental health and wellbeing.

The framework received a second-party opinion from ratings agency, Moody’s Investors Service, affirming its alignment with internationally recognized standards and its significant contribution to sustainable outcomes. Moody’s further assessed the framework as having a significant contribution to sustainability, giving it an overall sustainability quality score of SQS2 – very good. The university also maintains a Aaa rating by Moody’s, the highest possible rating in assessing creditworthiness.

“This inaugural sustainability bond is more than just a financial instrument,” says Lily Kong, the university’s president. “It reflects our belief that universities must play a leading role in building a more sustainable and inclusive future.”