SINGAPORE: Singapore will be offering between S$1. 9 billion and S$2. 4 billion of 50-year sovereign green provides, according to a public notice put out by the Monetary Authority of Singapore (MAS) on Thursday (Aug 4).
Called the Green Singapore Federal government Securities (Infrastructure) or Green SGS (Infra), the bonds would be the country’s inaugural issuance of sovereign green debt.
Having a maturity date associated with Aug 1, 2072, this is also the first time the Government is issuing 50-year bonds. Current SGS bonds have got maturities ranging from 2 to 30 years.
The price and yield of the bond will be determined via a bookbuilding process by the end associated with Thursday.
As much as S$2. 35 billion is offered via a positioning to institutional and other investors, while S$50 million will be set aside for retail investors in Singapore.
MAS, in its notice, said it reserves the right to decide on the last issuance amount plus “may at the sole discretion” reallocate the aggregate primary amount of bonds offered between the placement plus public offer.
The Green SGS (Infra) is part of the pipeline of up to S$35 billion of sovereign and public field green bonds that the Federal government and its statutory boards will issue simply by 2030.
As part of the Singapore Green Connection framework published within June, proceeds from green bond issuances should adhere to guidelines and may be used for projects such as renewable energy, power efficiency, preventing air pollution and climate alter adaptation.
Proceeds from the Green SGS (Infra) will be utilized to finance expenditures supporting the Singapore Green Plan 2030 , such as the Jurong Region Range and the Cross Island Line.