PUB issues S$800 million of its first green bonds, priced at 3.4%
PUB has issued S$800 million worth of green bonds with a 30-year tenor, and these have been priced to yield 3.4 per cent.
The national water agency’s first green bonds will mature on Aug 30, 2052, and its first coupon payment will be made on Feb 28, 2023, with subsequent payments made once every 6 months.
The bonds were priced on Aug 24, with DBS Bank and United Overseas Bank as its bookrunners.
In a media release on Friday (Sep 2), PUB said its fixed rate green notes met with “strong interest” from investors. It received subscriptions for roughly twice the value of notes on offer.
These green bonds are the first issuances of a new S$10 billion multi-currency medium-term note (MTN) programme by PUB.
It had announced a few days before the bonds were issued that it had established a new green financing framework to fund its planned and future green projects.
Potential projects eligible for financing include the Tuas Water Reclamation Plant, which is currently under construction, as well as floating solar photovoltaic projects.
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