SINGAPORE: A total of S$700 million (US$511 million) raised from the government’s first sovereign green bond has been allocated to finance the upcoming Jurong Region Line (JRL) and the Cross Island Line (CRL) on Singapore’s rail network.
The amount represents 30 per cent of the S$2.4 billion raised in the inaugural sovereign green bond – the Green Singapore Government Securities (Infrastructure) bond – as of Mar 31, 2023.
“The remaining unallocated proceeds are expected to be fully allocated to the JRL and CRL by the end of FY2024,” the Ministry of Finance (MOF) said on Thursday (Sep 21) when it released the first edition of the Singapore Green Bond Report.
The report details the allocation and expected environmental impact of Singapore’s sovereign green bond for the 2022 financial year.
The 50-year sovereign green bonds, issued in August 2022, was the Singapore government’s first issuance of sustainable debt. The second tranche of Green SGS (Infra) bonds was issued on Sep 4, 2023, and its allocation and impact details will be included in next year’s report.
These bonds are part of the pipeline of up to S$35 billion of sovereign and public sector green bonds that the government and its statutory boards will issue by 2030.
As of Mar 31, S$8.2 billion worth of green bonds have been issued across four green categories: Clean transportation, waste management, green building and sustainable water.
With climate change being the “defining challenge” of our generation, Second Minister for Finance and National Development and chair of the Green Bond Steering Committee Indranee Rajah said in the report that “sustainable finance plays a pivotal role as a catalyst for decarbonisation to tackle this climate crisis”.
Proceeds from green bond issuances must adhere to guidelines and can be used for projects such as renewable energy, energy efficiency, preventing pollution and climate change adaptation.
Projects financed by these green bond proceeds will facilitate Singapore’s transition to a low-carbon economy and put the country in a better position to meet its climate goals under the Paris Agreement and commitments under the United Nations’ Sustainable Development Agenda.