Singapore Inaugural Sovereign Green Bond

MAS announced in August 2022 that it is issue S$2.4 billion worth of 50 year sovereign green bond. Of these, only 50 million will be offered to individual investors, The remaining will be offered to institution and accredited investors.

This is the longest sovereign green bond issued till now. The green Singapore Government Securities comes with a yield of 3.04% per annum. This means that the maturity date is 2072. The proceeds will be used to support the Singapore Green Plan 2030.

Personally, I am giving this a miss. While it is higher secure, the 50 year tenor is more suited for institutions than for personal investment. I am currently in my 40s. 50 years later I will be 90 year old. Selling the bonds before 50 years will be a hit and miss thing.

If I have a child, I might consider buying it for his sake if I do have excess money. If I buy it when before he is 10 year old, it will mature 50 years later when he retires to a tidy sum. For example, if I invest 20k now, it will come up to a total of 89k 50 years later.

All in all, the Tenor is too long. Singapore Saving Bonds however is currently at 2.8%. It has a 10 year tenor and it can be withdrawn any time (about 1 month notice) without having to sell it in the open market. If you haven’t max out the 200k maximum, I would suggest for you to do that as a priority.

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