The Monetary Authority of Singapore (MAS) announced the upcoming issuance of Singapore’s inaugural sovereign green bond – known as Green Singapore Government Securities (Infrastructure) [“Green SGS (Infra)”]. This green bond will be launched via a book-building process within the week, and will be denominated in Singapore Dollars with a tenor of either 30 or 50 years, at a minimum issuance size of about S$1.5 billion. The exact tenor and issuance size will be determined based on prevailing market conditions.
Inaugural Green SGS (Infra)
2 Singapore’s first sovereign green bond forms part of the pipeline of up to S$35 billion of sovereign and public sector green bonds that the Government of Singapore and its statutory boards will issue by 2030.
3 The Green SGS (Infra) will be issued under the Singapore Green Bond Framework, which details the Government’s intended use of green bond proceeds, the governance structure to select eligible projects, the operational approach to manage green bond proceeds, and the commitment to annual allocation and impact reporting.
4 Proceeds from the inaugural Green SGS (Infra) will be used to finance expenditures in support of the Singapore Green Plan 2030, including the Jurong Region Line and the Cross Island Line.
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Syndication as a new issuance method
5 The planned issuance marks the introduction of syndication as a new method for issuing SGS, complementing the regular schedule of SGS auctions. Syndication involves the appointment of a group of banks, known as bookrunners, to jointly market and distribute a bond. As the issuance parameters such as tenor and size are determined on the date the SGS bond is priced, syndication enhances the Government’s ability to issue across varied market conditions. Syndications of SGS (Infrastructure) will take place under a newly established Medium Term Note programme (1.52 MB).
6 Both institutional and individual investors can apply to purchase the inaugural Green SGS (Infra). Interested institutional investors may approach the appointed bookrunners for more information – these are DBS Bank Ltd. (DBS), Deutsche Bank AG Singapore Branch (DB), The Hongkong and Shanghai Banking Corporation Limited Singapore Branch (HSBC), Oversea-Chinese Banking Corporation Limited (OCBC), and Standard Chartered Bank (Singapore) Limited (SCB). Subsequently, individual investors will be able to apply for bonds via application channels provided by DBS (including POSB), OCBC, and United Overseas Bank Limited (UOB), after MAS announces the opening of the Public Offer. More information about the syndication process is set out on the MAS website and in a Quick Guide for Individual Investors (143.8 KB).