SGX launches sustainable FI initiative

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

SGX says the Sustainable Fixed Income initiative allows investors to more easily identify investments that meet certain criteria at issuance. These criteria are:

Alignment with recognised green, social or sustainability standards for fixed income securities.

Confirmation by an external reviewer that the fixed income securities are aligned to the recognised standards. The reviewer must be a reputable firm with an established track record of providing similar reviews.

Publicly published reports setting out the fixed income securities’ alignment with the recognised standards.

Issuers may use an SGX Sustainable Fixed Income mark to identify the securities as having met these requirements.

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.

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.

Lee Beng Hong, Head of Fixed Income, Commodities & Currencies, SGX Group says, “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.”