The Monetary Authority of Singapore (MAS) has issued the country’s first sovereign green bond worth approximately SGD2.4 billion. The Green Singapore Government Securities (Infrastructure), also known as Green SGS (Infra), has a long maturity period of 50 years. The effective yield of 3.04 per cent includes an annual coupon rate of 3 per cent. The bond issuance was oversubscribed by SGD5.3 billion, more than double the size of the amount offered.
A second bond issuance worth SGD50 million will also be offered to individual investors. MAS will be accepting applications for this till August 10, 2022. The bonds will be issued on August 15, 2022. Under the public offer, retail investors are required to submit an application for a minimum of 10 units.
By 2030, the Government of Singapore’s plan to issue about SGD35 billion of sovereign and public-sector green bonds to finance key infrastructure projects with environmental benefits, including the Jurong Region Mass Rapid Transit (MRT) Line and Cross Island Line (CRL).