HDB raises S$1b from bond issuance to finance green building projects

SINGAPORE'S Housing Board (HDB) has announced a total of S$1 billion raised from its inaugural issuance of green bonds, where proceeds will be exclusively used to finance the statutory board's green building projects.

In a press statement on Wednesday (Mar 16), HDB said the 5-year fixed rate green notes under its existing S$32 billion multicurrency medium term note programme were issued on Mar 15.

They bear a coupon of 1.845 per cent per annum, payable semi-annually in arrears, and are due to mature on Mar 15, 2027.

The notes have been rated "AAA" by Fitch Ratings and come in dominations of S$250,000. They were offered by way of placement to investors, and in-principle approval for the listing of the notes on the Singapore Exchange Securities Trading has been obtained.

Bank of China, DBS, OCBC, Standard Chartered and UOB acted as joint lead managers and bookrunners for the deal.

HDB said it will finance its green building projects with the latest bond proceeds according to its recently launched Green Finance Framework, which sets out the parameters and process for assessing the projects that can be financed.

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Under the framework, HDB has identified 30 eligible projects for its Green Projects Register. These comprise new residential projects which are planned to achieve the Green Mark certification of GoldPlus or higher - or whose construction tenders were, or will, be awarded from March 2020 to March 2023.

Parc Residences @ Tengah is one such example of a project eligible to be financed with the recent proceeds from HDB's green bond issuance, given its suite of green and sustainable features as well as the option of subscribing to a centralised cooling system offered by SP Group.

Another instance is Heart of Yew Tee, as the integrated development will also have sustainable features to lower its energy consumption, thermal load and carbon footprint.

HDB said it will review its Green Projects Register annually to keep track of projects eligible to be financed or refinanced by its green bonds and loans.

For its green bonds, it intends to publish an annual green finance report which will be audited by an independent assurance provider, and provide a green loan report to lenders upon request.

The stat board also plans to issue at least 1 green bond per year to sustain its portfolio of green and sustainable developments going forward.

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