Singapore priced $2.4b inaugural sovereign green bond at 3.04%

The remaining $50m of the bond will be offered to investors.

Singapore priced the $2.4b inaugural sovereign green bond at 3.04%, of which, $2.35b was placed with institutional and accredited investors, said the Monetary Authority of Singapore (MAS).

The remaining $50m of the green bond will be offered to individual investors, MAS added. Interested applicants may submit their bid from 9 a.m. on 5 August to 12 noon on 10 August.

This bond, the first 50-year bond issued by Singapore Government, is also the longest-tenor green bond issued by a sovereign to date.

“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,” it added.

Commenting on this MAS Deputy Managing Director Leong Sing Chiong, said their strong order book shows investors’ confidence in the government's green goals.

“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,” it said.