Singapore plans to raise another US$1.3 billion via its green bond

Published Tue, Aug 22, 2023 · 03:54 PM

Singapore plans to raise at least US$1.3 billion by reopening its 50-year green bond, adding to its financial firepower to combat climate change.

The Monetary Authority of Singapore has tapped Citigroup, DBS Group Holdings, Oversea-Chinese Banking Corporation, Standard Chartered and United Overseas Bank to conduct the transaction, which is expected to be kicked off this week, according to a person familiar with the matter, who asked not to be identified because they’re not authorised to speak about it.

The city-state joins Hong Kong and countries such as Germany and Italy to sell green bonds this year, pushing global issuance by sovereigns and companies in that segment to nearly US$340 billion so far in 2023, up 17 per cent on the year, Bloomberg-compiled data show.

Singapore’s planned offering is part of a bid, announced last year, to raise as much as S$35 billion of environment-focused financing by 2030. Although the initial tap announcement on Tuesday (Aug 22) didn’t spell out exactly how any money raised would be spent, the proceeds of Singapore’s offering last year were earmarked for expanding public transport.

Singapore’s green bond framework says funds can be used for projects including improving energy efficiency, preventing pollution or natural resource management.

The note maturing in August 2072 traded above par at about 101 Singapore cents as on 12.49 pm in Singapore, according to indicative prices compiled by Bloomberg. That’s down from nearly 125 cents in May but up versus its offering price of 98.976 cents. BLOOMBERG