Sustainable debt market in Singapore grew healthily to $27.05b

Singapore’s sustainable debt market went up by about 10 times in the last five years.

The sustainable debt market went up from US$2b ($2.7b) in 2018 to US$20 ($27.05b) in 2022 amidst the rise in global green debt insurance, said Second Minister for Finance and National Development Indranee Rajah.

In a speech at ICMA 9th Annual Conference of the Principles, Rajah explained the progress in green finance and mentioned the ICMA Principles and Guidelines supporting the sustainable debt market.

These guidelines “set out clear expectations of what green or sustainability-linked debt instruments should entail.”

Rajah said the government has committed to issuing up to $35b of green bonds by 2030 in Singapore. 

The Singapore Green Bond Framework was also launched last year based on ICMA principles. 

“This forms the basis for the Government’s issuance of green bonds, including our first sovereign green bond issuance of $2.4b last year, which will be used to expand our electric rail network and green our transportation system,” he said.

Whilst Singapore already chanelled funds to green activities, Rajah still pushed for an acceleration and doing more to progressively decarbonise all sectors of the economy.

$1 = US$0.74