SGS Bonds: Information for Individuals
Singapore Government Securities (SGS) bonds pay a fixed rate of interest and have maturities ranging from 2 to 30 years. There are three categories of SGS bonds – SGS (Market Development), SGS (Infrastructure) and Green SGS (Infrastructure).
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Overview
AAA Credit Rating
Min. $1,000 Investment Amount
Buy with Cash, SRS and CPF Funds
Find out how to buy
Tax Exempt for individuals
In a Glance
SGS bonds are fully backed by the Singapore Government. There are three different categories of SGS Bonds, summarised here:
| SGS (Market Development) | SGS (Infrastructure) | Green SGS (Infrastructure) The first Green SGS (Infrastructure) would be issued in 2022. |
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| Legislation | Government Securities Act | Significant Infrastructure Government Loan Act (SINGA) | Significant Infrastructure Government Loan Act (SINGA) |
| Objective | To develop the domestic debt market | To finance major, long-term infrastructure | To finance major, long-term green infrastructure projects |
| Issuer | Government of Singapore | ||
| Sovereign Credit Rating | AAA | ||
| Available Tenor | 2, 5, 10, 15, 20 or 30 years | ||
| Currency | SGD | ||
| Frequency of Issuance | Monthly, according to the issuance calendar | ||
| Method of Sale | Uniform price auction; competitive or non-competitive bids. | ||
| Who can buy | Individuals, including foreigners, aged 18 years and above can buy SGS Bonds | ||
| Minimum Investment Amount | $1,000, and in multiples of S$1000 | ||
| Maximum Investment Amount | None; up to allotment limit for auctions | ||
| Source of funds | Cash, Supplementary Retirement Scheme (SRS) funds or CPF Investment Scheme (CPFIS) funds | ||
| Coupon Payment | Semi-annual coupon starting from the month of issue. Paid on the first business day of the month. | ||
| Transferable | Yes. SGS bonds can be traded on the secondary market – at DBS, OCBC, or UOB branches; or on SGX through securities brokers. |
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| Maturity and redemption | No early redemption, but can be sold in the secondary market. Investors receive the face (par) value at maturity (i.e. price of S$100) | ||
| Tax | There is no capital gains tax in Singapore. ● For individuals, interest income earned on SGS is tax exempt. ● Non-residents without a permanent establishment in Singapore do not have to pay taxes on interest income. |
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Note: The price of SGS bonds may rise or fall before maturity. If you want the flexibility of getting your full investment back in any given month, consider Singapore Savings Bonds instead.
Investing in SGS Bonds: Guide for Individuals
Step-by-step guide to investing in SGS Bonds. Find information on how to buy, check, and manage your SGS Bonds.
Understanding SGS Bonds
Get more information on SGS bonds to determine if it is the right investment before buying.
Buying and Selling SGS Bonds
Find out how to buy SGS bonds at an auction:
Find out how to buy and sell SGS bonds on the secondary market.Understanding Auctions
View the issuance calendar for planned auctions and find out how auctions work.
- View Issuance Calendar, Auction Announcements and Results
- How Auctions Are Conducted
- What Are Reopened Bonds
- What Are Mini Auctions
Managing SGS Investment
Calculate your returns and receive coupon payments.