Singapore Launches 30-Year Green Bond to Raise Up to $2.5 Billion

SINGAPORE – The Singapore government has launched a 30-year green bond aiming to raise up to $2.5 billion, according to a term sheet released on Tuesday.

The bond comes with an initial price guidance of approximately 3.46 percent and aims to gather between $2.1 billion and $2.5 billion. The government plans to sell up to $2.45 billion of these bonds to institutional investors and $50 million to the public through electronic applications. The bonds are set to mature on June 1, 2054.

Funds raised from this 30-year bond will be allocated to projects under Singapore’s green investment framework, supporting the city-state’s sustainability goals. This follows Singapore’s first green bond issuance last year, which raised $700 million through a 50-year green bond to finance infrastructure investments.

Singapore joins a global trend of issuing green bonds to finance environmentally beneficial projects and promote sustainable development. In 2024, governments and corporations worldwide have issued a record US$260 billion (S$350.4 billion) worth of green bonds, marking a 7 percent increase compared to the same period in 2023, according to Bloomberg data.

Other countries are also actively participating in the green debt market. Indonesia recently priced its largest Samurai bond offering, which included rare blue bonds dedicated to water-related projects. Germany, the European Union, Italy, and Japan have each raised at least US$10 billion through green bonds this year.

The Monetary Authority of Singapore (MAS) is acting as the government’s agent for the bond sale, with Citigroup, DBS Bank, HSBC Holdings, Standard Chartered, and UOB appointed to arrange the issuance. This initiative underscores Singapore’s commitment to sustainable development and its strategic approach to funding green projects, reinforcing its position as a leader in the global green finance market.