NEA to establish green bond framework, $3b note programme

The $3b multicurrency medium note programme will finance its flagship waste management project.

The National Environment Agency (NEA) is set to issue green bonds through its new green bond framework to finance several of its projects, including the Tuas Nexus Integrated Waste Management Facility (IWMF).

The $3b multicurrency medium-term note programme makes NEA the first statutory board to issue green bonds in support of Singapore’s green finance market.

“The establishment of NEA’s Green Bond Framework to finance Tuas Nexus IWMF and other environmentally sustainable projects marks another milestone in our stewardship journey. Tuas Nexus IWMF will be the region’s most advanced, efficient, and integrated solid waste treatment facility that treats separate waste streams with greater energy efficiency and reduces Singapore waste resource management’s overall carbon footprint,” said NEA CEO Luke Goh in a press statement.

The Tuas Nexus IWMF will be Singapore’s first integrated facility to treat burnable waste, source-segregated food waste and dewatered sludge. It will also be able to sort household recyclables collected under the National Recycling Programme.

The facility will be co-located with PUB’s Tuas Water Reclamation Plant to form Singapore’s first integrated solid waste and used water treatment facility to meet the country’s long-term needs.

“The Singapore Green Plan 2030 focuses on developing the green financing market by opening up alternative sources of capital to support the development of sustainable public infrastructure projects in Singapore. The establishment of the NEA Green Bond Framework sets a critical first step and forms a necessary benchmark in the market, responding to the need for a common and trusted standard for issuers and investors to rely on. The framework will also be an important driver in channelling the capital needed to help businesses and industries transition towards a climate-aligned economy and to reinforce Singapore’s position as an international green finance hub,” said DBS Bank Global Head of Fixed Income Clifford Lee.

DBS Bank is the sole arranger for the NEA’s MTN programme and is the green structuring advisor for NEA’s green bond framework.