Singapore issues S$1.5 billion of 50-year green bonds at 2.62% cut-off yield
All non-competitive applications were allotted, totalling more than S$92 million
THE results of the auction of Singapore’s third tranche of 50-year sovereign green bonds came in with a cut-off yield of 2.62 per cent on Thursday (Sep 26).
This is lower than the effective yield of 3.04 per cent during the first two tranches, when the sovereign green bonds were offered via a syndication method.
This is also the first time these green bonds, officially called Green Singapore Government Securities (Infrastructure), were sold through an auction.
The third offering of 50-year green bonds, at a maximum amount of S$1.5 billion, saw close to S$2.5 billion in applications, according to the auction results posted by the Monetary Authority of Singapore on its website.
All non-competitive applications were allotted, totalling more than S$92 million.
The rest were competitive applications, of which about 38 per cent were allotted at cut-off.
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Since this offer is a reopening of the first sovereign green bonds, it has the same coupon rate of 3 per cent and the same maturity date of Aug 1, 2072.
The bonds are expected to be issued on Oct 1, with coupon payments disbursed on the first day of February and August every year, until maturity or when they are redeemed.
While this offering is the third tranche for green bonds with a 50-year tenor, it is the fourth in a series of sovereign green bonds to be issued under the Singapore Green Bond framework.
SEE ALSO
The third offering of sovereign green bonds took place in May this year.
These bonds came with a 30-year tenor and were priced to yield at 3.3 per cent.
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.
Over the last two financial years, about S$2.8 billion of proceeds raised from the sale of these green bonds was allocated to finance the expansion of Singapore’s electric rail network, specifically the Jurong Region Line and Cross Island Line.
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