(Aug 22): Singapore plans to raise at least S$1.8 billion (US$1.3 billion or RM6.2 billion) by reopening its 50-year green bond, adding to its financial firepower to combat climate change.

The Monetary Authority of Singapore has tapped Citigroup Inc, DBS Group Holdings, Oversea-Chinese Banking Corporation Ltd, Standard Chartered plc and United Overseas Bank Ltd to conduct the transaction, which is expected to be kicked off this week, according to person familiar with the matter, who asked not to be identified because they’re not authorised to speak about it.

The city-state joins Hong Kong and countries such as Germany and Italy to sell green bonds this year, pushing global issuance by sovereigns and companies in that segment to nearly US$340 billion so far in 2023, up 17% on the year, Bloomberg-compiled data show.

Singapore’s planned offering is part of a bid, announced last year, to raise as much as S$35 billion of environment-focused financing by 2030. Although the initial tap announcement on Tuesday didn’t spell out exactly how any money raised would be spent, the proceeds of Singapore’s offering last year were earmarked for expanding public transport.

Singapore’s green bond framework says funds can be used for projects including improving energy efficiency, preventing pollution or natural resource management.

The note maturing in August 2072 traded above par at about 101 Singapore cents as on 12.49pm in Singapore, according to indicative prices compiled by Bloomberg. That’s down from nearly 125 cents in May but up versus its offering price of 98.976 cents.