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The Monetary Authority of Singapore (MAS) today announced the upcoming issuance of Singapore’s inaugural sovereign green bond – known as Green Singapore Government Securities (Infrastructure)
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
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
[1] SGS issued under the Significant Infrastructure Government Loan Act are known as SGS (Infrastructure), and are used to finance major long-term infrastructure.
[2] The minimum issue size required for benchmark inclusion is about S$1.5 billion.
[3] More information on the Singapore Green Bond Framework, Second-Party Opinion, and future allocation and impact reports can be found here .
[4] The expansion of Singapore’s electric rail network will enhance connectivity and encourage more commuters to take mass public transport which, together with walking and cycling, is the greenest way to commute. The development of JRL and CRL supports the “Sustainable Living” pillar of the Singapore Green Plan 2030, which targets to achieve 75% mass public transport (i.e., rail and bus) modal share. This is a key enabler to achieve the Government’s goal of reducing land transport emissions by 80% by or around mid-century, from its peak in 2016.
[5] This includes ATMs and internet banking platforms of DBS (including POSB), OCBC and UOB, as well as the mobile banking platforms of DBS and UOB.
