PUB sets up green financing framework, to launch green bonds under S$10b programme 

PUB has established a new green financing framework to fund its planned and future green projects, with plans to launch green bonds later this month.

These bonds will fall under a new S$10 billion multi-currency medium-term note (MTN) programme, the national water agency said in a press statement on Friday (Aug 19).

The green financing framework will ensure the green bonds follow market best practices. This includes “strong government and clear eligibility criteria” when evaluating and picking out 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.

“Our projects will advance goals in sustainable water and wastewater management, and renewable energy,” PUB said. To qualify as green projects, they must reduce greenhouse gas emissions, contribute to decarbonisation or show improvements to the environment.

PUB has engaged independent external reviewer Sustainalytics to provide a second-party opinion on the framework. The framework is aligned to the International Capital Market Association Green Bond Principles 2021 and the Asean Capital Market Forum Asean Green Bond Standards 2018, PUB noted.