Overview
Incentivising more issuances through MAS Sustainable Bond & Loan Grant Schemes
Our Sustainable Bond Grant Scheme (SBGS) and Green & Sustainability-Linked Loan Grant Scheme (GSLS) support corporates globally to invest in sustainable projects and assets, and adopt sustainable business practices.
In essence, the two grant schemes cover the costs of engaging independent service providers to validate the green and sustainability credentials of:
- Green, social, sustainable, and sustainability-linked bonds
- Green and sustainability-linked loans.
Accelerating Growth of Green Bond Markets in Asia through IFC-MAS Partnership
The IFC-MAS Partnership aims to encourage green bond issuances in two ways:
- Enhance the awareness and knowledge of professionals working in financial institutions on green finance through capacity building programmes;
- Promote the adoption of internationally recognised green bond standards and frameworks.
Key Facts and Trends
US$1 Trillion Sustainable Finance Bond Issuance
In 2021, global sustainable finance bond issuance – comprising green bonds, social bonds and sustainability bonds – hit a record high of US$1 trillionSustainable Debt Global State of the Market 2021, April 2022, Climate Bonds Initiative .
50% of Sustainable Debt Issuances
Singapore is ASEAN's largest sustainable debt market, accounting for more than 50% of sustainable debt issuances in 2021ASEAN Sustainable Finance State of the Market 2021, June 2022, Climate Bonds Initiative .
Almost $40 Billion Loans Issued
The issuance of green and sustainability-linked loans has also been on the rise in Singapore, with almost S$40 billion of such loans issued between 2018 to 2021Aggregated data from Climate Bonds Initiative reports and MAS' compilation of green and sustainability-linked loans from public sources .
MAS' Grants and Initiatives
To encourage more of such bond and loan issuances, and greater investments in green projects, MAS has rolled out a series of initiatives, including two grant schemes and a partnership.
Sustainable Bond Grant Scheme
The Sustainable Bond Grant Scheme (SBGS) encourages the issuance of green, social, sustainability, and sustainability-linked bonds in Singapore. Sustainable bond issuers can tap this grant to cover the additional cost of obtaining an external review on the impact of such bonds.
Learn more information about the SBGS
Green and Sustainability-Linked Loan Grant Scheme
The world’s first Green and Sustainability-Linked Loan Grant Scheme (GSLS) supports corporates to raise financing for investments in green projects, assets and more sustainable business models. It also encourages banks to develop green and sustainability-linked loan frameworks to make such financing more accessible to small and medium-sized enterprises. Borrowers can use this grant to offset the additional cost of validating green and sustainability-linked loans and frameworks.
Learn more information about the Green and Sustainability-Linked Loan Grant Scheme
IFC-MAS Partnership
MAS is partnering the International Financial Corporation (IFC), a member of the World Bank Group, to promote the growth of green bond markets in Asia.
Learn more information about the IFC-MAS Memorandum of Understanding