The sustainable bond market is in full bloom. A temporary lull of sustainable bond issuances in 2018 and 2019 has since given way to a proper bloom since 2020, where the issuance of green, social, sustainability and sustainability-linked (GSSSL) bonds has accelerated to a total of $4.925 billion outstanding.

Sembcorp Industries — whose income is driven by power generation and urban solutions — on Sept 29 priced its $675 million sustainability-linked bond (SLB) at 2.66%. This is the first SLB from Sembcorp but the second such issue in SGD, following Surbana Jurong’s $250 million issue in February.

The market is set to grow further with the government’s commitment to issue green bonds to fund public infrastructure projects while issuers and investors alike are becoming increasingly keen with increased awareness.

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