Singapore Exchange (SGX) announced today a new initiative, aimed at enabling investors to identify green, social and sustainability fixed income securities. Under the new program, issuers of the sustainable bonds will be able to use an “SGX Sustainable Fixed Income mark” for securities that meet requirements including alignment with standards and disclosure.

The initiative comes as labelled sustainable bonds have captured a significant portion of the fixed income market, with global issuance reaching a record 16% of bond volumes last quarter, and remaining more resilient than the overall market. Commenting on the new initiative, Tan Boon Gin, CEO of Singapore Exchange Regulation said that, “sustainable investing is gaining momentum and SGX Group anticipates that such an assurance may therefore be helpful for other asset classes.”

Tan added:

“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.”

In order to be recognized under the SGX Sustainable Fixed Income initiative, issuers will be required to meet a series of criteria, including ensuring that the securities align with recognized green, social or sustainability standards, obtain confirmation from a reputable external reviewer that the securities are aligned with the standards, and provide published reports setting out the securities’ alignment.

To retain recognition, issuers will be required to publish post-issuance reports as required under the standards, along with any material information that may affect alignment with the standards.

SGX said that it estimates that 200 SGX-listed fixed income securities already meet the SGX Sustainable Fixed Income criteria.

Lee Beng Hong, Head of Fixed Income, Commodities & Currencies, SGX Group, said:

“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.”