Singapore prices S$1.5 billion of 30-year green bonds at 2.57%
The proceeds will finance expenditures under the Singapore Green Plan 2030, including two new MRT lines
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[SINGAPORE] The third tranche of Singapore’s 30-year sovereign green bonds came in with a cut-off yield at 2.57 per cent on Friday (Mar 27).
The reopening of this 30-year green debt, officially known as the Green Singapore Government Securities (Infrastructure), saw applications totalling S$2.8 billion for an allotted amount of S$1.5 billion, bringing the bid-to-cover ratio to 1.85.
The cut-off yield of 2.57 per cent reflects a coupon of 3.25 per cent and a cut-off price of S$114.649 per S$100 in principal value.
Since the previous re-offering of this 30-year bond, yields have been gradually declining until last October, when they started climbing again.
The cut-off yield of 2.57 per cent is the highest since May last year, according to bond statistics from the Monetary Authority of Singapore (MAS).
All non-competitive applications were allotted, totalling about S$35.3 million, auction results posted on the MAS’ website on Friday indicated. The rest were competitive bids, of which about 66 per cent were allotted at the cut-off yield.
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This third offering of 30-year green bonds has a maturity date of Jun 1, 2054.
The bonds are expected to be issued on Apr 1, with coupon payments disbursed on the first day of June and December every year, until maturity or when they are redeemed.
Its reopening is the seventh in a series of sovereign green bonds that has been issued under the Singapore Green Bond framework.
Besides these 30-year green bonds which were issued in May 2024 for the first time, and then re-opened in April last year, there have been four offerings of 50-year sovereign green bonds since August 2022.
Including this latest tranche, Singapore has issued S$5.8 billion in 30-year green bonds, and S$7.7 billion in 50-year green bonds.
The Singapore government has indicated that a pipeline of up to S$35 billion of sovereign and public-sector green bonds will be issued by 2030.
A key aspect of the green label for the bonds is that the proceeds will be used to finance expenditures in support of the Singapore Green Plan 2030, including two new MRT lines – the Jurong Region Line and the Cross Island Line.
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