Singapore Set to Issue Its First Sovereign Green Bond in the Coming Months

Singapore Set to Issue Its First Sovereign Green Bond in the Coming Months

by June 10, 2022

Singapore will issue up to S$35 billion worth of public sector green bonds by 2030 to accelerate and lead the growth of its green finance market.

The inaugural Singapore sovereign green bond will be issued in the coming months.

The island nation had also announced the publication of the Singapore Green Bond Framework which will serve as a benchmark for the corporate green bond market.

Morningstar’s Sustainalytics has assessed the framework to be credible, impactful, and aligned with the ICMA Green Bond Principles and the ASEAN Green Bond Standards.

To qualify for financing via the Singapore sovereign green bonds, a project will first need to be classified nationally significant infrastructure under the Significant Infrastructure Government Loan Act (SINGA).

It must then meet the eligibility criteria stated in the Singapore Green Bond Framework.

In addition, the issuance of such green bonds will be subject to the overall legislative gross borrowing and interest cost limits under SINGA.

The Statutory Boards that have launched their respective green bond programmes, or are planning to do so, will also play a vital role in Singapore’s Whole-of-Government green financing efforts.

Their respective green bond frameworks will, likewise, be aligned with market principles, standards, and best practices stated in the national framework.

These public sector green bond issuances are a key part of Singapore’s overall sustainability agenda and will build on the Monetary Authority of Singapore’s efforts to develop the green financing market.

Through these high-quality issuances, Singapore is looking to deepen market liquidity for green bonds, attract green issuers, capital, and investors, and catalyse sustainable financing in the region.

Indranee Rajah

Indranee Rajah

“We are committed as one government to taking bold and decisive actions to tackle climate change, finance sustainable infrastructure, and catalyse the green economy.

 

The publication of our Singapore Green Bond Framework is yet another important step forward in this regard.”

said Indranee Rajah, Second Minister for Finance and National Development, at the Singapore Sustainable Investing and Financing Conference.

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