Singapore reopens green bond with S$2.8 billion issue

Singapore has relaunched its first-ever green bond offering and successfully obtained an additional S$2.8 billion (US$2.06 billion) by implementing placement and a public offer.

The Green Singapore Government Securities (Infrastructure), which are also known as the 50-year bonds, were introduced on August 24. These bonds have been established with a yield of 3.04% per year. Their fixed rate coupon is 3%, and they are being offered at a price of S$99.26 for every S$100 of the principal amount.

The ungraded product consisted of a total of S$2.75 billion in principal amount provided to institutional and various investors, and S$50 million provided for the general public.

Singapore introduced its inaugural environmentally friendly bond in the beginning of August 2022, totaling S$2.4 billion. Out of this amount, S$2.35 billion was allocated to institutional and qualified investors, while S$50 million was made available to individual investors.

"We have full assurance that these securities will solidify Singapore's status as a leading international center for sustainable finance. Additionally, they will serve as a valuable benchmark to support the expansion of environmental, social, and governance (ESG) financing in Asia, where substantial funds are needed to address climate challenges," states Clifford Lee, the global leader of fixed income at DBS. DBS played a crucial role as the exclusive advisor for the green transaction while also acting as a co-bookrunner alongside Citi, OCBC Bank, Standard Chartered, and UOB.

Sustainalytics gave their viewpoint as a third-party perspective.