Source: Socialist Republic of Vietnam
The new 30-year securities will be attractive to investors due to increasing concerns about Chinese bonds amid the Evergrande crisis and fears for global growth given a surge in COVID-19 infections. Yields are also attractive, with those on Singapore’s existing 30-year debt climbing above those on US Treasuries last week.
The Monetary Authority of Singapore (MAS) plans to announce on September 21 how much it intends to raise from the inaugural auction slated for September 28.
The central bank has already been paving the way for the issue by reducing the size of 15- and 20-year bond auctions since it announced plans for the new infrastructure bonds in February.
The new securities are the first to be offered under the central bank’s SGS (Infrastructure) category, as distinct from its regular SGS (Market Development) debt and its planned Green SGS (Infrastructure) that it aims to kick off next year.