Singapore-based biofuel startup Apeiron Bioenergy has successfully raised S$50 million (US$37 million) through the issuance of a five-year senior unsecured green bond. This funding marks the first-ever bioenergy-focused SGD bond offering in Asia and has attracted substantial interest from institutional and strategic investors, leading to oversubscription.
The recent funding round of Apeiron Bioenergy was led by SC Ventures, the investment arm of Standard Chartered Bank. HSBC played a crucial role as the lead manager for the bond issuance.
Furthermore, the capital raised through the green bond issuance is supported by the Credit Guarantee and Investment Facility (CGIF), an Asian Development Bank trust fund. It is part of an ASEAN+3 initiative to foster the development of local currency bond markets.
Established in 2007 and headquartered in Singapore, Apeiron Bioenergy is a globally integrated player in the bioenergy sector. The company has a comprehensive presence throughout the value chain, spanning from feedstocks to end- and by-products. It operates refineries and collection points across ten countries.
At the core of Apeiron’s operations is the collection and processing of diverse food and agricultural waste materials, including used cooking oil, tallow, and palm oil mill effluent. These waste inputs undergo advanced conversion processes to produce biodiesel, a renewable and sustainable alternative to conventional fossil fuels.
UCO, one of Apeiron Bioenergy’s primary products, is a clean waste-based feedstock for biofuel production that offers significant greenhouse gas emissions savings. It serves as a crucial feedstock for the production of renewable biodiesel, particularly sustainable aviation fuel (SAF).
The funds raised through the bond issuance will be allocated to general working capital requirements and capital expenditures aimed at expanding Apeiron Bioenergy’s network of collection points and treatment facilities dedicated specifically to used cooking oil.
Considering the projected growth of the SAF market, expected to expand at a compound annual growth rate (CAGR) of 42% over the next decade, the availability of high-quality feedstock becomes a critical factor in supporting this upward trajectory.
Chris Chen, Co-founder of Apeiron Bioenergy, expressed his delight at the response received for the green bond issuance with the support of CGIF. He emphasized the significance of this achievement, highlighting the strong investor confidence and the shared mission with the Asian Development Bank.
Chen stated, “This successful issuance enables Apeiron to expand our operations and solidify our position as a frontrunner in the bioenergy sector. Building upon our proven operational and financial track record, we remain fully committed to reducing our reliance on fossil fuels and driving the accelerated growth of green energy.”