Singapore to Raise SGD2.4bn from 50-year Sovereign Green Bonds

The Monetary Authority of Singapore (MAS) will raise SGD2.4bn (USD1.7bn) via the issuance of 50-year sovereign green bonds with a coupon rate of 3.04%, as reported by Nikkei Asia on August 6. The Green Singapore Government Securities (Infrastructure), or Green SGS (Infra), is the government’s longest-term bond in its green bond scheme. Most of the proceeds from Green SGS (Infra) will be utilized to expand Singapore’s rail network to reduce dependency on automobiles. In February, Singapore stated that it will issue up to SGD35bn (USD25.4bn) in green bonds by 2030 to support green infrastructure projects in the public sector.

Besides Singapore, in Asia, both Hong Kong and South Korea have also launched green bond schemes to assist their decarbonization objectives and boost green financial markets. For example, the Hong Kong government issued HKD35.1bn (USD4.47bn) in green bonds in 2021, then issued another batch of retail green bonds worth HKD20bn (USD2.55bn) in May of this year. By 2030, the city aims to cut carbon emissions by 65% to 70% from 2005 levels. To help Hong Kong transition to a low-carbon economy and mitigate the effects of climate change, it proposed to issue roughly HKD175.5bn (USD22.36bn) in green bonds over a five-year period beginning in 2021, with an estimated annual issuance of HKD35bn (USD3.36bn).

Sources:

https://asia.nikkei.com/Spotlight/Environment/Singapore-to-raise-2bn-from-its-first-green-bonds-this-month

https://www.zaobao.com.sg/finance/singapore/story20220805-1299913

https://www.stcn.com/stock/djjd/202204/t20220429_4483088.html

https://news.bjx.com.cn/html/20220127/1201919.shtml