The world’s first 50-year green bond purchased in Singapore marks the biggest milestone for the government of Singapore. This proves that there is no barrier or expiration date in upholding the green faith. The agent for the deal is the Monetary Authority of Singapore with the total of $1.7bn. For a yield around 3.04% the price is at 98.976 with the tightening from 3.15% from the initial guidance. The demand has doubled for 2.26x from the offered S$2.35bn.
The MAS’s deputy managing director for markets and development, Leong Sing Chiong gave remarks. According to him, the strong order book means the investors trust the government for its green infrastructure plan. This would also cover both financial and environmental infrastructure for the sustainable future. The inaugural issue for the green issuance programme was S$35bn. This is for the government to push out the bond yield curve beyond 30 years.
Basically, the United Kingdom owns the longest green bond with 2053 Gilt. Globally, Germany is the second longest with 2050 green Bonds. Meanwhile Poland sits in the third longest green bond globally for 2049. Although all those three are the longest among European countries, Germany gets the highest rating which is Triple A by three international rating agencies.
However, Clifford Lee from DBS Bank’s global head of fixed income said that the 50-year bond in Singapore is the only one in Asia rated AAA as well. The rating is also from three rating agencies. He adds that this opportunity would open the market for SGD deepening to leverage tenors and SGF yield curve. Basically, this debut is the government of Singapore’s act against climate change. They committed to have zero net emission at least by 2050.