Singapore launches 30-year green bond to raise up to $2.5 billion

SINGAPORE – The Singapore government aims to raise up to $2.5 billion through a 30-year green bond, according to a term sheet.

The bond, called Singapore Green Government Securities (Infrastructure), has an initial price guide of around 3.46 per cent, the term sheet shows. Its price is expected to be set at the end of May 21 and it will raise between $2.1 billion and $2.5 billion.

Singapore plans to sell up to $2.45 billion in bonds to institutions and $50 million to the public through electronic applications, according to people familiar with the matter. Retail investors can start applying for the bonds between 9am on May 23 and noon on May 27.

Money raised from the 30-year bond will be used on projects covered by the city’s green investment framework, according to the term sheet.

In 2023, Singapore raised $700 million through a 50-year green bond, the Republic’s first green bond issuance. Profits from that deal were used to finance infrastructure investments.

Singapore is part of a global borrowing race to finance projects that provide environmental benefits and support sustainable development. Governments and companies have sold a record $260 billion worth of green bonds in 2024, a 7 percent increase from the same period in 2023, according to data compiled by Bloomberg.

Elsewhere, Indonesia priced its biggest Samurai bond offering last week, which included rare blue bonds, which are used for a specific purpose involving water. Germany, the European Union, Italy and Japan have also each raised the equivalent of at least $10 billion in 2024 through green debt.

The Monetary Authority of Singapore is acting as the government agent in the bond sale and has hired Citigroup, DBS Bank, HSBC Holdings, Standard Chartered and UOB to organize it. REUTERS, BLOOMBERG