Singapore’s central bank announces S$1.5bn sovereign green bond issuance

The Monetary Authority of Singapore (MAS) has announced that the country will issue its inaugural green bond with a minimum issuance size of S$1.5bn. The 30- or 50-year tenor bonds will be denominated in local currency and proceeds will be used to finance projects under the Singapore Green Plan 2030, including the expansion of the country’s electric rail network. According to MAS: “Singapore’s first sovereign green bond forms part of the pipeline of up to S$35bn of sovereign and public sector green bonds that the government of Singapore and its statutory boards will issue by 2030.” In addition, the issuance will align with Singapore’s Green Bond Framework (GBF) which was published in June 2022. The GBF establishes the governance and oversight mechanism for projects that green bond proceeds will finance.