HDB raises $1b through its first green bond

The proceeds will be used to finance the board’s green building projects. 

The Housing & Development Board (HDB) scored an initial win in their green efforts as $1b was raised through the board’s inaugural green bond issuance. 

HDB’s Green Bonds, which are fixed at a 5-year rate under the current $32b Multicurrency Medium Term Note Programme, have a coupon rate of 1.845% per annum, payable semi-annually in arrear. A rating of AAA was awarded to them by Fitch Ratings, and is set to mature on 15 March 2027. 

The notes are in denominations of $250,000, with the notes also obtaining approval in principle from the Singapore Exchange Securities Trading Limited.

“The issuance of green bonds to finance current and future green projects in HDB’s building programme is thus timely and a natural progression of HDB’s sustainability journey. More than just a means of funding building projects, HDB’s entry into green financing underscores our commitment to make every HDB town not only liveable, but also green and sustainable,” said Tan Meng Dui, CEO, HDB.

Proceeds from the bond will be used to finance HDB’s green building projects, under the Green Finance Framework. The move, in turn, will support Singapore Green Plan’s 2030’s Energy Reset Pillar. 

As part of its transparent reporting on its sustainability journey, HDB also announced an annual green finance report, which will be audited by an independent party. A green loan report will also be made available to the lenders upon request, following any material developments.