Schemes and Initiatives
Sustainable Bond Grant Scheme
MAS' Sustainable Bond Grant Scheme encourages the issuance of green, social and sustainability bonds in Singapore and is open to first-time and repeat issuers. Find out about scheme details, including qualifying criteria, eligible expenses and issuance process.
Why Issue Green, Social and Sustainability Bonds
Green, social and sustainability bonds can help channel capital towards catalysing broader adoption of sustainability practices. Issuing such bonds allows companies to:
- Meet corporate social responsibility (CSR) objectives.
- Diversify their investor base.
- Achieve long-term pricing advantage.
About the Sustainable Bond Grant Scheme
MAS introduced the Sustainable Bond Grant scheme in 2017 to encourage the issuance of green, social and sustainability bonds in Singapore.
MAS recognises that issuers of these bonds may have to bear additional costs, as they engage external reviewers to ascertain their green, social and sustainability bond status.
Under the scheme, qualifying issuances can offset 100% of expenses attributable to obtaining an external review for green, social and sustainability bonds, up to a cap of S$100,000 per issuance.
See also:
- The Asian Green Bonds Opportunity - Opening Address by Mr Ng Yao Loong, Assistant Managing Director, Monetary Authority of Singapore, at the IFC Green Bonds Asia: Opportunities for Financial Institutions Conference on 7 June 2018
- Keynote Address by Mr Lawrence Wong, Minister for National Development and Second Minister for Finance, at the Investment Management Association of Singapore's 20th Anniversary Conference on 23 March 2017
How Green, Social and Sustainability Bonds Are Issued
To issue green, social and sustainability bonds, issuers need to go through the following steps:
- The conventional bond issuance process – issuers work with banks, legal and accounting firms, and credit rating agencies to arrange, underwrite and distribute the bond.
- An additional assessment process for green, social and sustainability bonds – this involves an external reviewer.
The external reviewer will provide an independent assessment of the following:
| Assessment | Details |
|---|---|
| Use of proceeds | Identify eligible project categories and selection criteria. |
| Project evaluation and selection | Process to evaluate and select projects for inclusion. |
| Management of proceeds | Process to manage and track actual use of proceeds. |
| Reporting | Reporting framework for the allocation of proceeds and details of projects. |
Scheme Details
The Sustainable Bond Grant Scheme is valid for the funding period between 1 June 2017 to 31 May 2023. The details of the scheme are as follows:
| Criteria | Details |
|---|---|
| Type of issuance | Green, social and sustainability bonds reviewed or rated to be aligned with internationally-recognised green/social/sustainability bond principles or framework. |
| Who qualifies | Open to first time and repeat green, social and sustainability bonds. Issuers may apply for the grant multiple times. |
| Eligible expenses | Costs incurred in respect of the independent review up to S$100,000. |
| Qualifying criteria | The bond must be issued and listed in Singapore, with an initial minimum principal amount of S$200 million or a programme size of at least S$200 million with an initial minimum principal amount of S$20 million. |