The Monetary Authority of Singapore (MAS) is planning to raise S$2.6 billion (US$1.9bn) in its inaugural sale of bonds to fund infrastructure projects.
MAS organized an auction on the 28th of September, giving Institutional and individual investors the chance tobid.
The institution is yet to announce the interest payments for the bonds slated to expire in October 2051, one hour after the auction, and the bond will be issued for trade-in secondary market on 1 October.
This move is unique as it marks the first Singapore Government Securities (SGS) bond issued under the Significant Infrastructure Government Loan Act (SINGA), which was introduced in February and passed by Singapore’s president in June.
This will allow the government to borrow up to S$90bn to fund infrastructure projects. The tenure is set at a minimum of 50 years while the yearly interest rate is capped at S$5bn. Each project financed under the legislation must be large scale with a cost limit of $4bn
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