Singapore Exchange Launches SGX Sustainable Fixed Income Mark for Issuers, Investors can Identify the Mark for Fixed Income Securities Meeting Green, Social or Sustainability Standards
30th November 2022 | Singapore
Singapore Exchange (SGX) has launched the SGX Sustainable Fixed Income mark for fixed income issuers, allowing investors to identify the mark for Fixed Income securities meeting Green, Social or Sustainability standards. SGX: “To continue being recognised under the SGX Sustainable Fixed Income initiative, issuers must publish any post-issuance reports such as the annual report, as required under the applicable recognised standard, as well as information on any material developments which may affect alignment with the recognised standards. Such reports and information must be made publicly available.” SGX RegCo estimates around 200 of SGX-listed fixed income securities already meet the SGX Sustainable Fixed Income criteria, would be on-boarded over the next few months.
“ Singapore Exchange Launches SGX Sustainable Fixed Income Mark for Issuers, Investors can Identify the Mark for Fixed Income Securities Meeting Green, Social or Sustainability Standards “
Tan Boon Gin, CEO of Singapore Exchange Regulation (SGX RegCo): “The purpose of financial innovation must be to provide real life solutions. The SGX Sustainable Fixed Income initiative enables investors to easily identify fixed income securities that are issued to embark on sustainable projects meeting market expectations. Investors will benefit from knowing that these bonds have been independently checked for alignment with the recognised standards. Sustainable investing is gaining momentum and SGX Group anticipates that such an assurance may therefore be helpful for other asset classes.”
Lee Beng Hong, Head of Fixed Income, Commodities & Currencies, SGX Group: “This recognition will help SGX Sustainable Fixed Income products stand out from among the close to 6,000 bonds listed on SGX at any one time. Issuers can use the recognition to demonstrate their commitment to these well-understood standards and raise their visibility and profile to investors who are interested in sustainable fixed income securities.”
Fixed Income Issuers – How to Apply
Issuers applying to list and quote fixed income securities on the SGX securities market may also submit an application for recognition under the SGX Sustainable Fixed Income initiative at the same time. SGX RegCo will review both applications concurrently.
SGX RegCo estimates some 200 of SGX-listed fixed income securities already meet the SGX Sustainable Fixed Income criteria and they would be on-boarded over the next few months.
SGX Sustainable Fixed Income initiative
The SGX Sustainable Fixed Income initiative recognises fixed income securities listed on SGX-ST that meet recognised standards for green social or sustainability fixed income securities. Wholesale and retail fixed income securities need to meet the following criteria at issuance to be recognised under this initiative:
- The fixed income securities are aligned with recognised green, social or sustainability standards for fixed income securities (“Recognised Standards”);
- A reputable external reviewer has confirmed that the fixed income securities are aligned with the Recognised Standards; and
- The reports setting out the fixed income securities’ alignment with the Recognised Standards are publicly available.
On an ongoing basis, in order to maintain recognition under the SGX Sustainable Fixed Income initiative, issuers must publish any post-issuance reports (e.g. ongoing use of proceeds reporting) required under the applicable Recognised Standard, as well as information on any material developments which may affect their alignment with the Recognised Standards.
Issuers can use the recognition to demonstrate their commitment to the Recognised Standards, and to raise their visibility and profile with investors that are interested in sustainable fixed income.
For investors, the initiative will enable them to easily identify sustainable fixed income securities, while the criteria that SGX imposes also provides assurance that fixed income securities recognised under the initiative have been independently verified for alignment with the Recognised Standards.
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