Tag: Apeiron Bioenergy

Apeiron Bioenergy Raises S$50 million through an Investment Grade Green Bond, the First Bioenergy-Focused SGD Bond Issuance in Asia

Apeiron Bioenergy (“Apeiron“), a leading integrated global player in bioenergy, raised S$50 million on Friday, 23rd June 2023, through the landmark issuance of a 5-year senior unsecured green bond guaranteed by Credit Guarantee & Investment Facility, a trust fund of the Asian Development Bank (“CGIF“), and an ASEAN+3 initiative to develop local currency bond markets.

Rated AA by S&P Global Ratings, the privately placed bond was well-received by investors and was oversubscribed despite a challenging macro environment. The green bond was issued at par and bears a coupon rate of 4.487% with HSBC as the sole lead manager.

The proceeds will be applied towards capital expenditure and asset improvement for collection points and pre-treatment facilities of waste-based feedstocks like used cooking oil (“UCO“) in the Philippines, Thailand, and Vietnam. The remainder will be used for general working capital requirements. The utilisation of proceeds will be guided by Apeiron’s Green Finance Framework endorsed by Sustainalytics, demonstrating the company’s commitment to integrating environmental, social, and governance factors into its operations.

UCO, one of Apeiron’s primary products, is one of the cleanest waste-based feedstocks for biofuel production offering the highest greenhouse gas emissions savings. It is a major feedstock for renewable biodiesel products like sustainable aviation fuel (“SAF“). As the SAF market is expected to grow at a compound annual growth rate (“CAGR“) of 42% in the next decade, the availability of feedstock emerges as a crucial bottleneck. Leveraging Apeiron’s robust network of suppliers across Asia, where the collection of waste-based feedstocks remains relatively untapped, the company is well-positioned to serve as the hub for the mass consolidation of waste-based biofuel feedstocks in the region.

Chris Chen, Co-founder of Apeiron Bioenergy said, “We are delighted by the overwhelming response to our green bond issuance supported by CGIF, which demonstrates strong investor confidence and our shared mission with the Asian Development Bank. This will allow Apeiron to expand our operations and maintain our position as a leader in the bioenergy sector. Building upon our operational and financial track record, we are fully committed to reducing reliance on fossil fuels and accelerating the growth of green energy.”

Mr. Hongwei Wang, Chief Executive Officer of CGIF stated, “We are pleased to support Apeiron in its inaugural green bond issuance which will certainly benefit them in diversifying funding sources to support its sustainable growth. The transaction showcases our commitment in promoting debut issuers and green bond issuances in ASEAN+3 region. The successful issuance of this bond also demonstrates market participants’ confidence in CGIF and its guarantee product.”

Sean Henderson, Co-Head of Debt Capital Markets, Asia-Pacific at HSBC said, “We are pleased to have supported this landmark transaction for Apeiron, the first ever SGD bond issuance from the bioenergy industry 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. The strong reception by investors also affirms the markets’ support for companies that can deliver solutions for the new economy.”

About Apeiron Bioenergy

Founded in 2007, Apeiron Bioenergy is an integrated global player in bioenergy products, spanning from feedstocks to end- and by-products. Headquartered in Singapore, the company operates refineries and collection points across 10 countries.

For more information, visitwww.apeironbioenergy.com.

For all media queries, please contact:
Kamal Samuel
Financial PR
T: 6438-2990
E: kamal@financialpr.com.sg

Apeiron Bioenergy secures equity investment from Proterra Investment Partners Asia to solidify upstream capabilities

Apeiron Bioenergy has entered into an equity investment agreement with Proterra Investment Partners Asia. The proceeds will be used to increase the number of collection points and upgrade existing processing plants to produce feedstocks of higher specifications.

“Considering the extremely tough macro environment now, it is a testament for Apeiron Bioenergy to weather such conditions and successfully fundraise,” said Chris Chen, Co-founder at Apeiron Bioenergy. “Investors believe in our business fundamentals and our vision for decarbonization. We look forward to increasing collection of used cooking oil to make an even stronger environmental and social impact.”

Apeiron Bioenergy has recently closed a separate equity financing round from Mitsui Chemicals. Both investments are set to position Apeiron Bioenergy for exponential growth amidst growing demand for renewable feedstock for advanced biofuels.

Exponential Growth Ahead

The global biofuel industry is projected to significantly increase by 2025 — compared to 2020, it is expected to triple in Asia, grow six-fold in the U.S. and three-fold in Europe, according to a January 2021 assessment by Greenea (https://bit.ly/3SHtYYM), a broker and consultant specializing in waste-based feedstock and biodiesel.

A leading integrated player and solutions provider in the bioenergy space, Apeiron Bioenergy, collects and processes a range of renewable feedstocks including used cooking oil (UCO), palm oil mill effluent (POME) and acts as a critical exporter across an ever-expanding Asian market. Over the past 15 years, Apeiron Bioenergy has built its presence in over 10 countries and collected more than 500 million litres of UCO between 2017-2021, offsetting an estimated 1.5 million tonnes of carbon emissions.

“Together with Apeiron, we can help organize and upcycle food waste streams across Asia and in the process support advanced biofuel development globally,” said Tai Lin, Managing Partner of Proterra Investment Partners Asia. “This investment will open up collaboration opportunities for our food and farming portfolio and create some of the positive impacts that everyone is talking about.”

In addition, further avenues for strategic collaboration will be made possible with Proterra Investment Partners Asia, whose food and agricultural investment management expertise and upstream connections will fast-track growth.

Industry Support

Apeiron Bioenergy has had a busy year. In May, the company received a green loan from HSBC as part of the Enterprise Financing Scheme – Green under Enterprise Singapore. This is the bank’s first EFS green loan processed under a Streamlined Certification Process to provide enterprises with simpler access to sustainable financing.

“We are grateful for the industry support which will allow us to build a collaborative community to resolve supply chain inefficiencies with Apeiron Bioenergy’s multicultural and muti-jurisdictional strategy,” said Richard Huang, Co-founder at Apeiron Bioenergy. “At Apeiron Bioenergy, our vision is to reduce carbon emissions across the land, sea and air transportation spaces with an efficient supply of biofuels.”

For all media queries, please contact:
Chi-an Chang
Financial PR
T: 6438-2990
E: chi-an@financialpr.com.sg

Apeiron Bioenergy closes equity investment from Mitsui Chemicals, poised to capture exponential growth in bioenergy market with Pan-Asian presence

Apeiron Bioenergy has successfully closed an equity financing round from Mitsui Chemicals. The funds will support Apeiron to increase its collection capacity for waste-based feedstocks across Asian markets and position the company for exponential growth amidst growing demand for renewable feedstock for advanced biofuels such as sustainable aviation fuel (SAF).

From left: Chris Chen, Managing Director, Apeiron Bioenergy; Tadashi Yoshino, Representative Director, Mitsui Chemicals

According to the International Energy Agency , global demand for renewable diesel is set to more than double, or by 11 billion litres, over the next five years. The demand mainly stems from government regulations in the US and the EU as established in the decarbonisation targets by COP26. However, the planned capacity is set to outpace domestic feedstock supply significantly, and production must keep up with the climate emergency – where will the additional feedstock come from?

A leading integrated player and solutions provider in the bioenergy space, Apeiron Bioenergy, collects and processes a range of renewable feedstocks including used cooking oil (UCO) and palm oil mill effluent (POME) acts as a critical exporter across an ever-expanding Asian market. Over the past 15 years, Apeiron Bioenergy has built its presence in over 10 countries and collected more than 500 million litres of UCO between 2017-2021, offsetting an estimated 1.5 million tonnes of carbon emissions.

“Zero Carbon emissions is one of our strategic targets by 2050. As one of Japan’s leading chemical companies, our investment in Apeiron is our way of contributing to solving the world’s future environmental issues,” said Tadashi Yoshino, Representative Director, Managing Executive Officer, Mitsui Chemicals. “Apeiron Bioenergy has a proven track record of aggregating renewable feedstock and streamlining the supply chain across Asia. We are delighted to invest in the company as it aligns with our sustainability goals.”

Apeiron Bioenergy’s access to diversified sources and networks of feedstock and relationships with downstream customers means it is in an excellent position to access and supply downstream by-products for Mitsui Chemicals to help achieve its net zero targets.

With Mitsui Chemicals serving as a strategic investor, Apeiron Bioenergy will be well-positioned to meet the substantial rise in demand for biofuels by ramping up its capacity of collection points and processing facilities through both organic and inorganic growth. The company is actively seeking to acquire or collaborate with local collectors of sustainable feedstocks in the Asian markets.

“Tackling supply chain issues in Bioenergy across Asia requires a community-focused, collaborative approach – our seasoned management team has proven that we can resolve supply chain inefficiencies with our multicultural and multi-jurisdictional strategy,” said Chris Chen, Managing Director of Apeiron Bioenergy. “We will be ramping up our collection capability, collaborating closely with our downstream partners to resolve the wider sustainability problem of reducing carbon emissions across the land, sea and air transportation spaces.”

For all media queries, please contact:
Chi-an Chang
Financial PR
T: +65-6438-2990
E: chi-an@financialpr.com.sg