MAS prices $2.6b of green bonds at 2.4% amidst strong demand

Institutional placement attracted an order book of over $4.6b.

The Monetary Authority of Singapore (MAS) priced $2.6b of new 20-year Green Singapore Government Securities (Infrastructure) bonds at a yield of 2.4%, after institutional demand exceeded the amount offered.

Of the total issuance. $2.55b was allocated to institutional and accredited investors, the MAS said on 22 July.

The remaining $50m will be offered to individual investors from 9 am on July 23 to noon on July 27.

The pricing came as the institutional placement attracted an order book of more than $4.6b, or 1.83 times the $2.55b offered.

The final yield was 15 basis points lower than the initial price guidance of 2.55%, with the placement size set at the top end of the targeted issuance range, the authority added.

The proceeds from the August 2046 bonds will finance expenditures under the Singapore Green Plan 2030, including the Jurong Region Line and Cross Island Line.

The bonds carry a coupon rate of 2.375% per annum. For the retail tranche, the effective yield will also be 2.4%, translating to an issue price of $99.605 for every $100 in principal value.

DBS Bank Ltd., Deutsche Bank AG, Singapore Branch, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank (Singapore) Limited, and The Hong Kong and Shanghai Banking Corporation Limited, Singapore Branch were the bookrunners for the transaction.

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