Institutional demand seen for SINGA bonds that follow SGS structure

Singapore

THE new Significant Infrastructure Government Loan Act (SINGA) bonds will qualify as liquid assets that financial institutions (FIs) can hold to meet regulatory requirements, The Business Times has learnt.

This is akin to how banks already do so with government bonds. Given that these SINGA bonds will mirror their Singapore Government Securities or SGS (Market Development) peers in yield, tenor and structure, they too are expected to attract institutional demand from banks and insurers, rather than retail investors who would favour shorter tenors and higher yields.