NTU issues second series of S$1 billion medium-term note programme

NTU Singapore priced the second series of its S$1 billion medium-term note (MTN) programme yesterday.

The second issuance on 30 June comprises S$350 million SGD-denominated bonds with a 15-year tenor and a coupon rate of 2.42% per annum.

The final orderbook stood in excess of S$500 million from banks, fund managers, insurance companies, government agencies and private banks in Singapore.

The net proceeds from this bond issuance will be used for NTU’s general corporate purposes and capital expenditure requirements, including sustainability research and initiatives, delivery of educational programmes and generational upgrade of infrastructure.

OCBC and UOB were appointed as joint lead managers and bookrunners for this bond issuance.

Ms Tan Aik Na, Senior Vice President (Administration), NTU Singapore, said: “NTU’s S$350 million bond issuance under our S$1 billion medium-term note programme will go towards advancing our NTU2030 strategic goals where leaders and talent create societal impact through education, research and innovation, enabled by an operationally excellent eco-system. The success of our maiden sustainability-linked bonds, which raised S$650 million in October 2021, shows the trust, confidence and strong support investors have in NTU.”

In October 2021, NTU’s issued the world’s first publicly-offered sustainability-linked bond by a university in the inaugural series of its MTN programme, comprising S$650 million in 15-year notes with a coupon rate of 2.185% per annum.

The final orderbook then stood in excess of S$850 million from insurance companies, fund managers, banks, corporates and private banks in Singapore.

NTU has a credit rating of ‘Aaa’, the highest available, along with a baseline credit assessment of ‘aaa’ by Moody’s Investors Service.

NTU is one of just four universities outside the United States with Moody’s ‘Aaa’ rating. The global ratings agency has also issued a “stable” rating outlook for NTU.