The Government of Singapore released its Singapore Green Bond Framework, outlining guidelines for its first sovereign green bond. The bonds are expected to be released in the second half of 2022. The Green Singapore Government Securities (Infrastructure) bonds (Singa bonds) will be issued under the Significant Infrastructure Government Loan Act 2021 (Singa) and will serve as the benchmark for corporate green bonds.
The Singa bonds will be used to fund expenditure for projects under eight categories, including renewable energy (RE), energy efficiency, green infrastructure, clean transportation, climate change, sustainable water and wastewater management among others. The projects are required to meet the green criteria under the framework to be eligible, such as the Jurong Region Line (JRL) and the Cross Island Line (CRL). The Singa bonds will be issued and managed by the Monetary Authority of Singapore (MAS).
The move comes as the government explores the use of green bonds for climate change adaptation in the country. During Budget 2022, the Government of Singapore announced that it plans to release approximately USD35 billion in public sector green bonds by 2030.