Singapore to issue inaugural sovereign green bond

Singapore will issue its first sovereign green bond - the Green Singapore Government Securities (Infrastructure).

The Monetary Authority of Singapore (MAS) announced that the green bond will shortly be launched via a syndicated book-building process and 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 Green SGS (Infra) offering will be open to institutional and individual investor, and 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, MAS said.

This first issuance "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," MAS said.

The bond 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.

The Singapore Green Bond Framework is structured to align with the International Capital Market Association (ICMA) Green Bond Principles 2021 and the ASEAN Capital Markets Forum ASEAN Green Bond Standards 2018.

MAS has appointed 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) as bookrunners for the inaugural issuance.

In 2021, MAS formed a new Sustainability Group and hired Darian McBain as chief sustainability officer.

The Sustainability Group steers sustainability efforts across MAS and help the organisation build deeper capabilities. The group coordinates MAS' green finance and sustainability agenda - "strengthen the financial sector's resilience against environmental risks; develop a vibrant green finance ecosystem to support Asia's transition to a low-carbon future; identify strategic green finance collaborations with regional and international counterparts; and reduce MAS' own carbon and environmental footprint," MAS said at the time of announcing the group's formation and McBain's hire.

Read more: Singapore Green Bond FrameworkDarian McBainASEAN Capital Markets Forum ASEAN Green Bond StandardsDBS Bank Ltd.Deutsche Bank AG Singapore BranchGovernment of SingaporeHSBCInternational Capital Market Association Green Bond PrinciplesMonetary Authority of SingaporeOversea-Chinese Banking CorporationStandard Chartered Bank