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Sustainability-Linked Bonds

Towngas SLB likely to miss target with 25bps step-up

Written by Jeannette Leong

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Towngas Smart Energy’s USD SLB has reached its December 2025 observation date, with verification due by 30 April 2026. Disclosed photovoltaic (PV) capacity in its 2025 annual results meeting remains materially below target, indicating a likely miss of the Sustainability Performance Target (SPT).

The bond includes a 25bp coupon step-up if targets are not met, but given the short remaining tenor, the pricing impact is limited and not clearly reflected in current trading levels.

About the author

Jeannette Leong

Jeannette Leong

Research Associate, APAC

Based in Singapore, Jeannette focuses on credit research and analysis across the Asia-Pacific region. She brings 19 years of fixed income investing experience in emerging markets, Asian fixed income and China’s onshore bond market.

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