In its desire to offer more financial instruments to companies listed on the Singapore Stock Exchange (SGX), the Monetary Authority of Singapore (MAS) has disposed in the introduction of a new program through which it will subsidize the cost of issuing green bonds. The Green Bond Scheme, as it is called, will target companies and investment funds in Singapore. Our Singapore company formation experts can assist foreign investors interested in starting a business in the city-state.
The SGX has become one of the most sought stock markets in the world during the last years because of the quick and modern evolution it has had. In order to keep up with the fast developments, the Singapore Central Bank has proposed the enabling of the Green Bond Scheme, through which investment funds and companies listed on the SGX will be able to issue financial products, such as securities and other debt instruments at no costs at all.
According to the MAS, the program provides for a 100% subsidy of the cost related to the external review of the green bonds. Under the scheme, each issuance can qualify for a grant of 100,000 SGD. Moreover, Singapore companies and funds could receive the subsidy more than once if they issue other green securities.
If you want to open a company in Singapore, our company registration agents can assist you.
Singapore companies seeking to issue green bonds must meet certain criteria in order to qualify for the Green Bond Scheme. After having the bonds acknowledged as green, their value must be of at least 200 million SGD and have a minimum tenure of 3 years. There are no restrictions related to the currency the bonds are issued in. Also, the grant will be issued starting with the 1st of June of this year and up to the 31st of May, 2020.
An impressive fact about the green bond market is that is rose to more than 80 billion USD in 2016 which is why investors in Singapore have welcomed the new grant scheme.
For full information on the listing criteria imposed by the Singapore Stock Market, please feel free to contact us. You can also rely on our company formation consultants in Singapore for assistance in setting up a business in the city-state.