Interest rates have been decreasing over the last few months. This can be seen as well by the latest September 2025 issuance of the Singapore Savings Bond, where the average return over 10 years amount to 2.11%. This rate is significantly lower than what was available in the calendar year 2024, where there are months with more than 3.00% average return over 10 years.
Website: SBSEP25 GX25090A Bond Details
The result is that the required yield of assets has decreased as well. This can be seen by the increase in prices of all existing assets, including the Green SGS (Infrastructure) 30-Year Bond. In the latest reopened bid in April 2025, the average yield of 2.50% per annum is the required rate of return by investors, which is representative of the current interest rate environment. With a fixed coupon rate of 3.25% per annum, this translates to a closing price of SGD116.79 per SGD100 of principal amount of the Bonds.
Website: Auction: NA24300E 30-Year Bond (Reopened)
Investors will also be able to sell their existing bond holding in the open market, where on 29 August 2025, the closing bond price is SGD120 per SGD100 of principal amount of the Bonds.
This represents a premium of approximately 20% from its par value and initial issue price. During the original syndication in June 2024, the issue price was SGD99.053 per SGD100 of principal amount of the Bonds, representing a closing yield of 3.30% per annum. The required rate of return by investors in the calendar year 2024 was higher and therefore, the issue price was lower and below par value.
Website: Syndication: Green SGS (Infrastructure) Bonds
This is aligned to my illustration previously, where assuming that there are no changes to the dividend paid, the share price of an equity stock will adjust accordingly. For more details, do refer to the link below.
Do note however, that as it is a 30-Year Bond that is listed on SGX, the bond is not as liquid on the open market. The trade volume is minimal on a day-to-day basis. This may be difficult for bond holders with large holdings to liquidate as there may not be sufficient buyers.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
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