Sovereigns and central banks

Singapore extends green bond curve

Written by Jeannette Leong

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Singapore returned to the green bond market on 22 July 2026 with its third green government bond, and its first at the 20-year point. The Government is marketing S$2.1bn to S$2.6bn of Green SGS (Infrastructure) due August 2046 at initial price thoughts (IPT) of around 2.55%, adding a shorter maturity to a curve previously anchored by green bonds due 2054 and 2072.

The new bond matters because it sits close to the conventional curve. The conventional 2.75% SGS due March 2046 matures only five months earlier and is closely matched on duration, providing a useful near-twin against which to test whether Singapore's sovereign green label delivers a pricing benefit.

On that comparison, the March 2046 conventional bond yielded 2.33% on 20 July 2026 against IPT of around 2.55%. IPT is only the starting point for bookbuilding, however, so the current differential does not yet establish whether the deal will achieve a greenium. The existing June 2054 Green SGS currently yields modestly above its closest conventional comparator, indicating no observable greenium on that basis.

With no Green SGS yet matured, the S$13.5bn outstanding represents 7.3% of the S$185.2bn SGS market; the new transaction would lift the green share to approximately 8.3% to 8.6%. Reported proceeds so far have financed two rail projects, the Jurong Region Line and Cross Island Line, expected to deliver annual carbon savings of 100,000 to 120,000 tonnes of carbon-dioxide equivalent once operational.

About the author

Jeannette Leong

Jeannette Leong

Research Associate, APAC

Based in Singapore, Jeannette focuses on credit research and analysis across the Asia-Pacific region. She brings 19 years of fixed income investing experience in emerging markets, Asian fixed income and China’s onshore bond market.

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