NEA raises SGD1.65 billion in maiden issuance largest inaugural bond issuance by a Singapore statutory board

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 The first and second series of the National Environment Agency (NEA)’s SGD3 billion Multicurrency Medium Term Note (MTN) programme were priced yesterday evening. In the largest inaugural bond issuance by a Singapore statutory board, NEA raised SGD1.65 billion of green bonds in a dual-tranche issuance. The final order book stood in excess of SGD2 billion from asset managers, agencies, banks and private banks.

The issuance comprised:

  • SGD 350 million, 10-year Fixed Rate Notes which have a coupon of 1.67 per cent per annum and
  • SGD 1.3 billion, 30-year Fixed Rate Notes which have a coupon of 2.50 per cent per annum

Interest payments on both series are payable semi-annually in arrear.

NEA’s maiden issuance is the longest tenor green bond denominated in SGD to date, and also the longest tenor unrated public green bond in Southeast Asia.

Clifford Lee, Global Head of Fixed Income, DBS, said, “We are delighted to have worked closely with NEA to bring yet another new development to Singapore’s green financing market. The confident and robust take-up of NEA’s and the public sector’s first green bond demonstrates that the market is ready to throw its support behind the Singapore’s sustainable development plans[1]. Investors are also signalling that sustainable infrastructure development will give Singapore a competitive advantage and are willing to invest in industry initiatives that bring long-term gains. The strength of this issuance is a watershed moment as it demonstrates that investors will respond positively when there is a trusted standard for issuers and investors to rely on[2], in this case the NEA Green Bond Framework. This in turn will contribute towards Singapore’s ambitions of becoming the green finance capital of Asia and the world.”

DBS and National Environment Agency – Deal Stats
Combined Books in excess of SGD2 billion (Good at Reoffer) 
By Type: 
FM/Agency 90%
Bank9%
Private Bank1%
  
By Region: 
Singapore 98%
Others 2%
  

Luke Goh, CEO of NEA said, “The strong reception to the public sector’s first green bond affirms investors’ confidence in Singapore’s sustainable development efforts. We are encouraged by the strong market demand and range of investors that subscribed to NEA’s green bonds. We look forward to completing the Tuas Nexus Integrated Waste Management Facility (IWMF) which will significantly boost Singapore’s resource management capabilities. In particular, it will process different waste streams at much higher efficiency and reduce Singapore waste management’s overall carbon footprint.”

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