Proceeds to Fund Eco-Friendly Building Initiatives as Part of Green Finance Strategy
SINGAPORE: The Housing & Development Board (HDB) has successfully raised S$1 billion from its first green bond issuance, marking a significant step towards financing its sustainable building projects.
The 5-year green bonds, issued under HDB’s existing S$32 billion multicurrency medium-term note programme, feature a fixed annual coupon of 1.845%, payable semi-annually. The bonds, which are due to mature in March 2027, have received an “AAA” rating from Fitch Ratings and are available in denominations of S$250,000.
These funds will be used to support HDB’s green building initiatives, in line with its newly introduced Green Finance Framework. The framework establishes criteria for selecting projects eligible for financing through green bonds, and HDB has already identified 30 projects for its Green Projects Register. These include residential developments aimed at achieving Green Mark certification of GoldPlus or higher, with a focus on sustainability features like energy efficiency and reduced carbon footprints.
Notable projects include Parc Residences @ Tengah, featuring sustainable designs and a centralised cooling system, and the integrated Heart of Yew Tee development, which will incorporate features to reduce energy consumption and thermal load.
HDB plans to issue at least one green bond annually to continue supporting its green and sustainable developments, with plans for transparent reporting on the use of funds and the environmental impact of these projects.
