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Singapore boosts green bond sale to as much as $2.8 bil

Bloomberg
Bloomberg • 2 min read
The city-state — which boosted the size from an earlier target of at least $1.8 billion — plans to raise as much as $2.75 billion. Photo: Samuel Isaac Chua/The Edge Singapore
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Singapore raised $2.8 billion of green bonds by reopening an existing 50-year maiden note it sold last year, adding resources to its climate-change efforts.

The city-state — which boosted the size from an earlier target of at least $1.8 billion — raised $2.75 billion via a placement to institutions and $50 million through a public offering, according to a person with knowledge of the matter, who asked not to be identified as the information is private. The issuer earlier announced details of the sale on the website of the Monetary Authority of Singapore, or MAS, which acted as a government agent in the sale.

The offering underscores a rush by borrowers to finance projects that will provide environmental benefits and support sustainable development. Singapore joins Hong Kong and countries such as Germany and Italy in selling green bonds this year, pushing global issuance of the environmentally friendly notes by sovereigns and companies to over US$344 billion ($465.5 billion) so far in 2023, up 18% from a year earlier, Bloomberg-compiled data show.

Singapore priced the notes to yield 3.04%, inside an earlier target of about 3.15%. The sale is part of an effort, announced last year, to raise as much as $35 billion of environment-focused financing by 2030. Proceeds from the deal will be used to finance expenditures in support of the Singapore Green Plan 2030, including the development of two routes on its electric rail network, according to a statement on the MAS website on Aug 21.

MAS hired Citigroup Inc., DBS Bank Ltd., Oversea-Chinese Banking Corp., Standard Chartered Plc and United Overseas Bank Ltd. for the placement to institutions, while DBS, OCBC and UOB were participating banks for the public offering.

See also: Singapore plans to raise another $1.8 bil via its green bond

The note maturing in August 2072 traded above par at about 101 cents as of 2.11pm local time, according to data compiled by Bloomberg. That’s down from nearly 125 cents in May, but still higher than when priced at 98.976 cents.

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