Banks are bidding for the largest issue yet from the Housing Board, totalling up to $1.6 billion, said the International Financing Review.
HDB has asked banks for proposals to sell a seven-year bond for a target size of $1 billion and a $600 million greenshoe.
If it does achieve the maximum deal size, it will beat its largest single issue when it sold a $1.5 billion, 1.875 per cent four-year issue in 2013.
Bids are due on Monday.
HDB got its first rating in October when Moody's scored it Aaa, the top rating, increasing its appeal to the asset liability management desks of banks.
The rated HDB notes will now have a zero-risk weighting and qualify as Level 1 high-quality liquid assets (HQLA) under the Monetary Authority of Singapore's rules on liquidity coverage ratios (LCR).
Previously, the unrated notes qualified as a Level 2 HQLA and were subject to a 15 per cent haircut under LCR rules.