Featured Insights

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In order to support the growth of the green bond market and to establish Singapore as a regional hub for this important new asset class, the Monetary Authority of Singapore (MAS) in June 2017 introduced the Green Bond Grant Scheme to help issuers offset the additional cost associated with Green Bonds. Under the Scheme, 100% of any costs incurred by an issuer in relation to the external reviewer’s provision of an independent assessment will be reimbursable, subject to a cap of S$100,000.Key criteria to be met in order to qualify for the grant include:

• Bond has to be issued in Singapore and listed on the Singapore Stock Exchange (SGX).
• Principal amount for each qualifying issue must be at least S$200m (or equivalent in foreign currency).
• Bond tenor of at least three years, non-redeemable during this three-year period.
• Must be a qualifying debt security (QDS) under Singapore’s Income Tax (Qualifying Debt Securities) Regulations (ITR).
• Lead manager is a Financial Sector Incentive (FSI) company in Singapore.
• More than half of the gross revenue earned for work undertaken in arranging the issuance of the bonds, must be attributable to an FSI.
• Independent external review or rating has to be undertaken based on internationally recognized green bond standards.

In order to be eligible for the grant, more than half of the expenditure for the external review or rating is attributable to Singapore-based service providers.