Monetary Authority of Singapore Annual Report 2012/2013

A PURPOSEFUL FINANCIAL CENTRE

Corporate Debt Market

The Singapore corporate debt market was buoyant in 2012, encouraged by a low interest rate environment and investors seeking relative stability in the fixed income markets. Outstanding volumes grew by 14% y-o-y to S$231 billion as at end of 2012. Issuance activity was also at its highest since 2007, with S$134 billion of debt securities issued in all currencies during the year.

In the Singapore Dollar (SGD) bond market, a record S$30.5 billion of bonds were issued, well surpassing the previous high of S$24.2 billion achieved in 2010. In addition, the weighted average maturity of SGD bond issuances in 2012 increased by to 12.9 years from 7.5 years in 2011. Singapore remains an attractive issuance venue for several foreign entities. In 2012, non-Singaporean firms accounted for 22% of all SGD debt issuances.

Islamic financial services continued to grow. The year also saw renewed interest in sukuk issuances in Singapore. Two SGD sukuk totalling S$130 million were issued in 2012 by local entities including the first convertible sukuk in Singapore. The first half of 2013 saw a further two sukuk issues amounting to S$100 million and the launch of a S$500 million multi-currency corporate sukuk programme by a local entity.