Singapore has reportedly sold a green bond with an approximate 30-year maturity to increase global sales and support its $35bn SGD environmental funding target set for 2030.
Singapore Pushes Environmental Agenda With Sale Of Green Bond
According to Bloomberg, an anonymous source familiar with the matter said that the city-state “tapped the market” for $2.5bn SGD and fixed a 3.3% yield for this bond. Based on data compiled by Bloomberg, governments and companies have sold green bonds for an unprecedented value of $260bn since the start of the year. This is 7% higher compared to the same period in 2023.
Singapore is aiming to fund environmental and sustainable initiatives, and its latest move seeks to increase green debt allotments for public sector infrastructures. In 2022, it raised green funds by selling a 50-year bond.
Singapore is planning to sell bonds of up to $2.45bn SGD to institutions and $50m SGD to the public. These will mature on 1 June 2054.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
The EU, Germany, Italy and Japan have each accumulated a minimum of $10bn via green debt. Indonesia’s Samurai blue bond was the country’s most significant bond in 2023 and these funds were specifically used for water developments.
Singapore will use the proceeds from these investments and expenditures on its established green bond scheme. The Monetary Authority of Singapore (MAS) will be the government’s representative overseeing the sale of the green bond. It appointed Citigroup Inc., DBS Bank Ltd., HSBC Holdings, Standard Chartered and United Overseas Bank Ltd to arrange the transaction.
