NEA issues green bond in support of Singapore’s green finance market
Singapore, 17 August 2021 (Source: NEA)– The National Environment Agency (NEA) announced the establishment of its S$3 billion Multicurrency Medium Term Note (MTN) Programme and NEA’s Green Bond Framework today. Proceeds from the issuance of Notes under the MTN Programme will be used to finance sustainable infrastructure development projects including Tuas Nexus Integrated Waste Management Facility (IWMF), NEA’s flagship waste management project.
Issuance of green bonds will help develop green finance solutions and markets, supporting Singapore to become a leading centre for green finance in Asia, and around the world. This is part of the Green Economy Pillar under the Singapore Green Plan 2030. Launched on 10 February 2021, Singapore’s Green Plan is a whole-of-nation sustainability movement to advance the national agenda on sustainable development. Under the Plan’s Green Economy pillar, Singapore will seek green growth to create new jobs, transform our industries, and harness sustainability as a competitive advantage. The IWMF will provide opportunities for this, and financing it through Green bonds issuance closes the development loop by ensuring the facility adopt best-in-class environmentally friendly features.
Tuas Nexus Integrated Waste Management Facility
Tuas Nexus IWMF is an integral part of NEA’s long-term plan to meet Singapore’s solid waste management needs. It will be Singapore’s first integrated facility to treat incinerable waste, source-segregated food waste, and dewatered sludge. The facility will also have the capability to sort household recyclables collected under the National Recycling Programme. Tuas Nexus IWMF will be co-located with PUB’s Tuas Water Reclamation Plant (Tuas WRP) to form Tuas Nexus, Singapore’s first integrated solid waste and used water treatment facility that will meet Singapore’s long-term solid waste management and used water treatment needs (refer to the infographic on Tuas Nexus).
When completed, Tuas Nexus IWMF will be an energy and resource-efficient solid waste management facility that will boost Singapore’s recycling efforts and bring Singapore closer to our zero waste vision. These efforts are part of Singapore’s Zero Waste Masterplan, where targets have been set to strengthen Singapore’s climate, resource, and economic resilience through a circular economy approach (refer to Annex A for more information on Tuas Nexus IWMF).
Mr Luke Goh, Chief Executive Officer of NEA said, “The establishment of NEA’s Green Bond Framework to finance Tuas Nexus IWMF and other environmentally sustainable projects, marks another milestone in our stewardship journey. Tuas Nexus IWMF will be the region’s most advanced, efficient, and integrated solid waste treatment facility that treats separate waste streams with greater energy efficiency and reduces Singapore waste resource management’s overall carbon footprint.”
NEA Green Bond Framework
Under NEA’s MTN Programme and Green Bond Framework, issuance proceeds will be used to finance Green Projects which meet the Eligibility Criteria outlined in the Framework.
The construction and operation of Tuas Nexus IWMF will bring a number of expected environmental benefits as it will:
- Be equipped with a highly efficient wet flue gas treatment system to ensure clean air emissions.
- Be an advanced, efficient, and integrated solid waste treatment facility that treats multiple waste streams with greater energy efficiency.
- Achieve high resource recovery through an automated materials recovery facility with economies of scale, higher sorting efficiencies, and recovery yields for recyclables such as metals, paper, and plastic recyclables.
- Achieve high land-use efficiency through the innovative use of space, plant design, and equipment layout.
- Be equipped with advanced technologies to minimise solid residues for landfilling.
Refer to Annex B for more information on NEA’s Green Bond Framework.
V.E, part of Moody’s ESG Solutions, has provided a second party opinion on NEA’s Green Bond Framework. V.E is of the opinion that the Framework is aligned with the four components of the Green Bond Principles 2018 and best practices identified by V.E . V.E has been part of Moody’s ESG Solutions since 2019. Moody’s ESG Solutions is a business unit of Moody’s Corporation that serves the growing global demand for ESG and climate insights. The group’s comprehensive offering includes ESG scores, climate data, Sustainability Ratings, and Sustainable Finance certifier (refer to NEA’s website for V.E.’s second party opinion).
Mr Clifford Lee, Global Head of Fixed Income of DBS Bank said, “The Singapore Green Plan 2030 focuses on developing the green financing market by opening up alternative sources of capital to support the development of sustainable public infrastructure projects in Singapore. The establishment of the NEA Green Bond Framework sets a critical first step and forms a necessary benchmark in the market, responding to the need for a common and trusted standard for issuers and investors to rely on. The framework will also be an important driver in channeling the capital needed to help businesses and industries transition towards a climate-aligned economy and to reinforce Singapore’s position as an international green finance hub.”
DBS Bank Ltd. is the Sole Arranger for NEA’s MTN Programme and Green Structuring Advisor for NEA’s Green Bond Framework.
NEA will announce more information on the inaugural issuance of NEA’s Green Bond under the MTN Programme in due course.
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Featured Image: Artist Impression of Integrated Waste Management Facility (IWMF). Image credit NEA.
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