Singapore Exchange (SGX Group) has launched a new initiative to identify green, social and sustainability fixed-income securities that meet recognized standards.

The initiative, SGX Sustainable Fixed Income, allows investors to more easily identify investments that meet the following criteria at issuance:

• Alignment with a list of recognised green, social or sustainability standards for fixed-income securities
• Confirmation by a reputable external reviewer with a proven track record that the fixed-income securities are aligned to the standards
• Publicly published reports setting out the securities’ alignment with the standards.

To continue being recognized under the initiative, issuers – who may use its mark to identify the securities as having met these requirements – must make publicly available any post-issuance reports, as required under the standards, and information on any material developments that may affect alignment with them.

Issuers applying to list and quote fixed-income securities on the SGX securities market may also submit an application for recognition under the initiative at the same time. Singapore Exchange Regulation (SGX RegCo), which will review both applications concurrently, estimates that some 200 of SGX-listed fixed-income securities already meet the initiative’s criteria and will be onboarded over the next few months.

“The initiative enables investors to easily identify fixed-income securities that are issued to embark on sustainable projects meeting market expectations,” says Tan Boon Gin, SGX RegCo’s CEO. “Investors will benefit from knowing that these bonds have been independently checked for alignment with the recognized standards. Sustainable investing is gaining momentum, and SGX anticipates that such an assurance may therefore be helpful for other asset classes.”

Lee Beng Hong, SGX Group’s head of fixed income, commodities and currencies, adds: “This recognition will help the initiative-recognized 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.”