The Monetary Authority of Singapore aims raise at least S$1.5 billion (US$1.08 billion) this week with the country’s maiden sale of a sovereign green bond, the proceeds of which will fund infrastructure projects with environmental benefits.
Known as Green SGS (Infra), the green bond will be launched via a book-building process within the week, and will be denominated in Singapore dollar 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.
This 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.
Issued under the Singapore Green Bond Framework, which details the government’s intended use of green bond proceeds, the Green SGS (Infra) proceeds will be used to finance expenditures in support of the Singapore Green Plan 2030, including the mass transit Jurong Region Line and Cross Island Line.
Both Institutional and individual investors can apply to purchase the inaugural Green SGS (Infra).
Interested institutional investors can contact the appointed bookrunners, namely DBS Bank, Deutsche Bank AG Singapore Branch, HSBC Singapore Branch, Oversea-Chinese Banking OCBC and Standard Chartered Bank (Singapore).
While individual retail investors will be able to apply for bonds via application channels offered by three Singaporean banks namely DBS (including POSB), OCBC, and UOB, after MAS announces the opening of the Public Offer.
The MAS will announce on its website the offer size, yield, price and application timeline after the bond has been priced in the institutional market.