March 24 (Renewables Now) - The Monetary Authority of Singapore (MAS) plans to introduce a Green Bond Grant scheme this year in order to help establish a green bond market in the country.
Qualifying issuances will be able to offset 100% of the expenses for obtaining an external review for green bonds, up to a cap of SGD 100,000 (USD 71,450/EUR 66,140) per issuance.
"What excellent news! The cost of getting an external review is one of the key hurdles that hold potential first-time green bond issuers back from joining the party," said the Climate Bonds Initiative (CBI).
MAS, which is Singapore's central bank, will launch the scheme as part of plans to develop a wider range of sustainability-oriented benchmarks, funds and products. Speaking at a conference on Thursday, Singapore’s Minister for National Development Lawrence Wong said he believes that there is potential to develop such a market in the country.
“The presence of a green bond market here will add to the breadth and depth of Singapore’s debt market, providing buy-side participants with more investment opportunities, and supporting the growth of ancillary services as well,” Wong said.
(SGD 1.0 = USD 0.715/EUR 0.661)