Apeiron Bioenergy, a bioenergy solutions provider, has announced raising S$50 million (about $37 million) through a five-year senior unsecured green bond.
The green bond, guaranteed by the Credit Guarantee & Investment Facility, a trust fund of the Asian Development Bank, was oversubscribed and garnered strong interest from institutional and strategic investors, according to an announcement on Monday.
Apeiron said it will use the fresh funds for capital expenditure and the enhancement of collection points and pre-treatment facilities for waste-based feedstocks like used cooking oil (UCO) in the Philippines, Thailand, and Vietnam.
UCO is a key product of Apeiron. It is among the cleanest waste-based feedstocks for biofuel production, offering a significant reduction in greenhouse gas emissions. It is an essential feedstock for renewable biodiesel products like sustainable aviation fuel (SAF).
The SAF market is expected to grow at a compound annual growth rate (CAGR) of 42% in the next decade.
“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,” said Apeiron Bioenergy co-founder Chris Chen.
In October last year, Apeiron Bioenergy entered into an equity investment agreement with Proterra Investment Partners Asia.
The exposure to biofuel was the first of its kind from Proterra Investment Partners Asia, which is a specialist private equity manager focused exclusively on investing in the Asian food sector.
Over the past 15 years, Apeiron Bioenergy has built its presence in over 10 countries and offset an estimated 1.5 million tonnes in carbon emissions.
Headquartered in Singapore and founded in 2007, the company closed a separate equity financing round from Mitsui Chemicals in August 2022.