Record $96 billion in long-term corporate debt issued here last year, Latest Business News - The New Paper

Record $96 billion in long-term corporate debt issued here last year

This article is more than 12 months old

A record volume of $96 billion in long-term corporate debt was issued in Singapore last year, up 7.8 per cent from the previous year.

This growth was driven by non-Singdollar denominated long-term corporate debt securities, as Asian issuers sought to raise capital to finance growth, the Monetary Authority of Singapore (MAS) noted.

Total corporate debt issued fell 9 per cent to $236 billion last year, mainly due to a $31 billion fall in non-SGD short-term debt issuances, notably commercial paper.

About $210 billion, or about 88.9 per cent, of the total debt issuance was non-SGD denominated.

This underscores "the strong international characteristics of Singapore's corporate debt market", MAS reported last Friday.

Overall, Singapore's debt market continued to grow, with total debt outstanding up 10 per cent year on year to $424 billion - a compounded annual growth rate of 8.3 per cent since 2014.

Non-SGD debt outstanding last year stood at $271 billion.

MAS has identified green, social and sustainability bonds as a growth area.

"There is growing recognition within the region of the potential of capital-market solutions."

MAS has included social and sustainability bonds in its Green Bond Grant Scheme, now called the Sustainable Bond Grant Scheme.

Under the scheme, issuers of green, social and sustainability bonds that obtain an external review can fully offset their external review expenses, subject to a funding cap of $100,000 per issuance.

Singapore's green bond market stands at over $6 billion.

Social and sustainability bonds have a "distinct yet complementary role to green bonds", with sustainability bonds delivering social and environmental benefits, said MAS. - THE STRAITS TIMES