The Ministry of Finance (MOF) has allocated $700 million – or around 30% – of the proceeds from its first green bond to the Jurong Region Line (JRL) and Cross Island Line (CRL) in the FY2022.
The details were revealed in the first edition of the Singapore green bond report, which discloses the use of the proceeds raised from the bonds.
The Monetary Authority of Singapore (MAS), on Aug 4, 2022, priced $2.4 billion worth of 50-year sovereign green bonds. The bonds carry a coupon of 3.04% per annum (p.a.). The bond was the first 50-year bond issued by the government.
The remaining unallocated proceeds are expected to be fully allocated to both lines by the end of FY2024.
According to MOF, the development of both lines will “significantly [reduce] land transport emissions in absolute terms, in alignment with Singapore’s net zero target by 2050”.
When fully operational, the JRL and CRL are expected to bring carbon savings that is equivalent to removing 22,000 cars from Singapore’s roads, according to findings from Morningstar Sustainalytics, an environmental, social and governance (ESG) research, ratings and analytics firm.
See also: A US$12 bil climate fund is readying a rare bond issuance
“The government is committed to a credible, high-quality framework for green bond issuance, and reporting is a key part of this endeavour. The first edition of the Singapore Green Bond Report accounts for how the government allocated the proceeds of the inaugural $2.4 billion Green SGS (Infrastructure) bond and the expected environmental impact this will make,” says Indranee Rajah, minister in the Prime Minister’s office, second minister for finance and national development and chair of the green bond steering committee.
