Budget 2021: Government to issue green bonds on certain public infrastructure projects

Nisha Ramchandani

Published Tue, Feb 16, 2021 · 05:14 PM

Singapore Budget 2021

The government will issue green bonds on select public infrastructure projects, with up to S$19 billion in public sector green projects identified as a starting point.

In his Budget speech on Tuesday, Deputy Prime Minister and Finance Minister Heng Swee Keat said that the issuance will serve as a reference for the Singapore dollar corporate green bond market - including the standards and framework applied - and yields achieved.

He noted that Singapore's position as an international financial centre can drive the flow of capital towards sustainable development, both in Singapore and in Asia.

The Monetary Authority of Singapore has been spearheading Singapore's Green Finance Action Plan to develop green finance solutions and markets for a sustainable economy.

Mr Heng said: "The issuance of green bonds by the government will build on these efforts by deepening market liquidity for green bonds, attracting green issuers, capital and investors, and anchoring Singapore as a green finance hub."

One project that will be financed via green bonds is Tuas Nexus, which integrates waste and water treatment facilities, and maximises energy and resource recovery in the solid waste and used water treatment processes.