Housing and Development Board (HDB) 2.94% 5Y Green Senior Bond SGD

Phillip Bond Desk  |   05 Jul 2022  |    207 views

The Housing and Development Board has just announced the issuance of its 5-year green senior bond at a final price guidance of 2.94%. The proceeds of these notes will be used to finance or refinance Eligible Green Projects under the Project Category of Green Buildings and for such other purposes, in each case, as set out in the “4.1 Use of Proceeds” section of the Green Finance Framework of the Issuer. These green bonds are senior unsecured with a maturity date as at 13 July 2027. In terms of coupon payment, it will be paid semi-annually with the first coupon pay out on 13 January 2023.

 

The Housing & Development Board (HDB) is a statutory board of the Ministry of National Development (MND) and was established on 1 February 1960. Its mission is to provide Singaporeans with affordable, quality housing and a great living environment. Some principal activities include: developing public housing and related facilities, allocation of properties and management of public housing and related facilities. HDB currently has a credit rating of AAA by Fitch and the new issuance is also expected to be rated AAA.

 

In FY2021, HDB net assets have increased from $15.35bn in FY2020 to $15.36bn in FY2021. The net deficit stood at $2.31bn. This deficit will be covered by the government grant of $2.34bn that will be provided this year. The Ministry of Finance (MOF) will also act as the lender of last resort to the HDB for its funding requirement as the MOF has funded the HDB’s past deficits. Currently cash and cash equivalent has decreased from $76.1mn in FY2020 to $62.8mn in FY2021.

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