Singapore launching 30-year green bond to raise up to $2.5 billion

Singapore – The Singapore Government aims to raise up to $2.5 billion through a 30-year green bond, according to a term sheet.

The bond, termed the Green Singapore Government Securities (Infrastructure), has an initial price guidance of about 3.46 per cent, the term sheet showed. It is expected to be priced by the end of May 21 and will raise between $2.1 billion and $2.5 billion.

Singapore plans to sell as much as $2.45 billion of bonds to institutions and $50 million to the public through electronic applications, according to people familiar with the matter. Retail investors can begin to apply for the bonds between 9am on May 23 and noon on May 27.

Money raised from the 30-year bond will be used on projects covered under the city’s green investment framework, the term sheet said.

Singapore in 2023 raised $700 million through a 50-year green bond, the Republic’s first green bond issuance. Proceeds from that deal were used to fund infrastructure investments.

Singapore is part of a global borrowing rush to finance projects that provide environmental benefits and support sustainable development. Governments and corporates have sold a record US$260 billion (S$350.3 billion) worth of green bonds in 2024, an increase of 7 per cent over the same period in 2023, according to data compiled by Bloomberg.

Elsewhere, Indonesia last week priced its biggest Samurai bond offering that included rare blue bonds, which are used for a specific purpose that involves water. Germany, the European Union, Italy and Japan have also each raised an equivalent of at least US$10 billion in 2024 through green debt.

The Monetary Authority of Singapore is acting as a government agent in the bond sale and has hired Citigroup, DBS Bank, HSBC Holdings, Standard Chartered and UOB to arrange it. REUTERS, bloomberg