Singapore, 4 August 2022… The Monetary Authority of Singapore (MAS) today announced that Singapore’s S$2.4 billion inaugural sovereign green bond was priced at 3.04%. S$2.35 billion of the 50-year bond (the “Aug-72 bond”) was placed with institutional and accredited investors. The remaining S$50 million of the bond will be offered to individual investors, who may submit their applications from 9:00am on 5 August to 12:00 noon on 10 August 2022.
Placement of 50-year SGS (Aug-72 bond)
2 The new Aug-72 bond is the first 50-year bond issued by the Singapore Government, and is also the longest-tenor green bond issued by a sovereign to date. The book-building process saw strong investor demand, reflected in today’s combined placement orderbook of more than S$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, while the placement size of S$2.35 billion was at the top end of the targeted issuance size. The bonds were placed with a diverse mix of high-quality institutions. DBS Bank Ltd. (DBS), 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.
3 Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS, said, “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. 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.”
Public Offer of the Aug-72 bond
4 The Aug-72 bond will be open for applications from individual investors from 9:00am on 5 August 2022 to 12:00 noon on 10 August 2022. S$50 million of the bond will be offered to the public. The effective yield will be 3.04%, as determined through the institutional book-building process
5 Individual investors who wish to subscribe to the Aug-72 bond should review the product details carefully, and assess whether the risk/returns and characteristics of long-tenor bonds meet their financial needs. Investments in Singapore Government Securities (SGS), including the Aug-72 bond, bear market risk. If investors sell the bond before its maturity date, they may receive less, or more, than their original investment, as the market price of the bond may rise or fall with changing market conditions.
6 All applications for the Public Offer should be made using the Electronic Securities Application (ESA) or Initial Public Offer (IPO) Application, which is available via the application channels
7 Please refer to the Product Fact Sheet on the application process for the Public Offer of the Aug-72 bond. For further queries relating to the application process, please refer to the hotline numbers below.
Hotline numbers:
Additional Information: This Public Offer is only for investors in Singapore and not elsewhere. Please see selling restrictions included in the Offering Circular and the Public Notice .
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