MAS to roll out Singapore’s first sovereign green bond

It will be denominated in Singapore dollars with a tenor of either 30 or 50 years.

Singapore’s first sovereign green bond –- Green Singapore Government Securities –- will be rolled out within the week via a book-building process, the Monetary Authority of Singapore (MAS) announced Monday.

According to MAS, the green bond will be denominated in Singapore Dollars with a tenor of either 30 or 50 years, at a minimum issuance size of $1.5 billion. 

“The exact tenor and issuance size will be determined based on prevailing market conditions,” added MAS.

In issuing the Green SGS, MAS said it will use the syndication method, which involves the appointment of a group of banks to be known as book-runners, to jointly market and distribute a bond.

Institutional investors who wish to purchase the green bonds may seek the help of the following appointed book-runners: 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). 

individual investors, on the other hand, can apply for bonds via application channels provided by DBS (including POSB), OCBC, and United Overseas Bank Limited (UOB), after the opening of the Public Offer. 

“As the issuance parameters such as tenor and size are determined on the date the SGS bond is priced, syndication enhances the Government’s ability to issue across varied market conditions. Syndications of SGS (Infrastructure) will take place under a newly established Medium Term Note Programme,” MAS said.

The inaugural Green SGS is part of the government’s $35 billion sovereign and public sector green bonds pipeline to be issued by 2030. Its proceeds will be used to finance expenditures in support of the Singapore Green Plan 2030, including the Jurong Region Line and the Cross Island Line