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The case for sovereign green bonds

Singapore can take steps to increase access to the green bond market by leveraging its established financial infrastructure and geography to become a green finance hub in South-east Asia.

In March this year, Lawrence Wong, Minister for National Development and Second Minister for Finance, said MAS will "seek to promote the development of a wider range of sustainability-oriented benchmarks, funds and products" to cater to a growing regional demand, starting with green bonds. He also recognised the potential to develop a green bond market through a variety of methods.

SUSTAINABLE investing, green finance and green bonds - these are "buzz words" used by governments, financial institutions and corporations around the world, but what do they actually mean?

Green bonds are akin to conventional bonds in many ways. Pricing, issuance structures and...