The Monetary Authority of Singapore (MAS) has priced Singapore’s $2.4 billion 50-year inaugural sovereign green bond with a 3.04% per annum (p.a.) coupon. The bond will mature in August 2072.
Of the amount, $2.35 billion was placed with institutional and accredited investors. The remaining $50 million will be offered to individual investors, who may submit their applications from 9am on Aug 5 to 12pm on Aug 10. The minimum sum for retail investors is $1,000, or 10 application units of $100 each.
The new bond is the first 50-year bond issued by the Singapore government and is the longest-tenor green bond issued by a sovereign to date.
The book-building process saw strong investor demand, with a combined placement orderbook of over $5.3 billion or 2.26 times the size of the amount offered under the placement.
The yield of 3.04% represented a significant tightening of -11 basis points from the initial price guidance at the start of the book-building. The placement size of $2.35 billion was at the top end of the targeted issuance size.
DBS Bank, Deutsche Bank AG Singapore Branch (DB), The Hongkong and Shanghai Banking Corporation Limited Singapore Branch (HSBC), Oversea-Chinese Banking Corporation Limited (OCBC), and Standard Chartered Bank (Singapore) Limited (SCB) were the bookrunners for the transaction.
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“The successful launch of Singapore’s inaugural sovereign green bond marks an important milestone in our sustainability journey. The strong orderbook affirms investors’ confidence in the government’s plans to build green infrastructure for a financially and environmentally sustainable future,” says Leong Sing Chiong, deputy managing director (markets and development), MAS.
“In addition, the extension of the sovereign yield curve to 50 years will further develop the Singapore Dollar bond market and support longer-tenor corporate issuances. MAS will continue to support the pipeline of green sovereign bonds, as well as the broader development of green finance as an enabler of global efforts to mitigate climate change,” he adds.
