Chart of the Day: Government bonds raised $3.1b in 1H2018

Land Transport Authority’s $1.2b bond offering is the biggest SGD bond so far this year.

This chart from Thomson Reuters reveals that the government & agencies sector accounted for 41.4% of the Singapore dollar bond market, raising $3.1b in proceeds, up 122.5% from the first half of 2017.

The financials sector accounted for 27.5% of the SGD bond market and totalled $2.1b (US$1.6b) so far this year. Meanwhile, real estate followed behind with a 22.3% market share.

The Singapore dollar bond market reached $2.0b (US$1.5b) during the second quarter of 2018, a 63.9% quarterly decline in proceeds from the first quarter of 2018 as the number of primary issuances fell 30.0%.

This brings total Singapore-dollar bond issuance to $7.5b (US$5.7b) so far this year, or 41.9% lower compared to the proceeds raised in the first half of 2017.

Land Transport Authority’s $1.2b bond offering is the biggest SGD bond so far this year.

State-owned Housing and Development Board (HDB) continued to tap the local bond market with three primary offerings worth $1.6b. Temasek Holdings’ unit, through Astrea IV, priced its Class A-1 bonds worth $242m, which are part of its US$501m asset-backed securities.

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