The debt maturing in 2072 will be available to both institutional and retail investors. Official details on the price and the yield will be publishedInitial price talks centred on the 3.15% area, according to a person familiar with the matter, who asked not to be identified because they’re not authorised to speak about it. The city state doesn’t have a traditional bond with a 50-year maturity. The yield on its 30-year conventional debt has risen steadily over the past year. It stood at 2.
Singapore, which now aims to raise between S$1.9-billion and S$2.4-billion from the debut issue, is a relative latecomer to the booming global market for sustainable debt. Europe is the dominant region for issuance, and fellow Asian financial hub Hong Kong raised HK$20-billion via its first green bond for retail investors earlier this year.
With concern about climate change increasing, the market for environmental, sustainable and governance debt is now worth several trillion dollars. Singapore’s new bond will help establish a curve for local currency green notes. Keen to position itself as an environmental finance hub, the city state is already encouraging sustainable issuance with a program to fundof companies’ bonds and loans. Still, its local-currency green debt market is smaller than that of fellow Asian financial hub Hong Kong, Bloomberg data show.
Singapore’s issuance will fund the expansion of its electric rail network. It is part of the government’s plan to raise as much as