Institutional and accredited investors have bought up S$2.35 billion (US$1.70 billion) worth of the 50-year sovereign green bonds issued by the Monetary Authority of Singapore (MAS).
The remaining S$50 million (US$36.3 million) of the Aug-72 Green SGS Bond issuance, with a maturity date of 2072, will be offered to individual investors who submit an application for purchase between August 5 and 10.
The yield of 3.04% entails a coupon rate of 3% per annum and a price of S$98.976 (US$71.91) per S$100 in principal value.
The bond is the first 50-year bond issued by the Singapore government, and it is also the longest-tenor green bond issued by a sovereign to date. In the event of over-subscription, the MAS will seek to allocate the bonds to as many individuals as possible, taking into account the distribution of applications.
“The successful launch of Singapore’s inaugural sovereign green bond marks an important milestone in our sustainability journey,” says Leong Sing Chiong, deputy managing director for markets and development at the MAS. “The strong order book affirms investors’ confidence in the government’s plans to build green infrastructure for a financially and environmentally sustainable future.”
“The extension of the sovereign yield curve to 50 years will further develop the Singapore dollar bond market and support longer-tenor corporate issuances,” Leong adds. “The MAS will continue to support the pipeline of green sovereign bonds, as well as the broader development of green finance as an enabler of global efforts to mitigate climate change.”
Proceeds from the sale will be used to finance expenditures in support of the Singapore Green Plan 2030, including the mass transit Jurong Region Line and the Cross Island Line.