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SGX welcomes 56 new green bond listings in October

The first Asia Pacific Green Bond is listed on SGX.

There were 56 new bond listings in October bringing the total number of bonds listed year to date to 446 with total proceeds of S$182 billion.

According to a report by SGX, this is a 17% increase relative to the number of bonds listed in September. It also represents a 21% increase compared to 369 bonds listed and 15% increase compared to S$160 billion raised in same period last year.

SGX adds that Asian investors rising interest in “green bonds” is evidenced with issuers in Asia Pacific issuing new bonds to meet investors’ demand. Broadly, green bonds are defined as debt securities in which capital raised are used for new and existing projects with environmental benefits. In Asia, the first green bond, listed on SGX, is issued by the Export-Import Bank of Korea whereby the proceeds are applied exclusively toward financing climate friendly projects. Anstock II Ltd and Stockland Trust Management Ltd, listed the first green bonds by Taiwanese and Australian issuers on SGX in July and this month respectively.

Increasingly, companies are incorporating sustainability goals in their business and capital management considerations. Issuers can look to issue green bonds as part of their long-term sustainability initiatives, while Investors who seek to promote environment-focused investments may include green bonds in a portfolio with specific guidelines on social responsibility.
 

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