The Monetary Authority of Singapore (MAS) has announced the extension of its Global-Asia Bond Grant Scheme (G-ABGS) and the introduction of a new Global-Asia Digital Bond Grant Scheme (G-ADBGS). The G-ABGS, which began in 2017, supports bonds issued in Singapore by first-time issuers with an Asian nexus. The new G-ADBGS aims to support the issuance of digital bonds, enhancing operational efficiency and reducing costs.
The funding period for both schemes spans five years, from 1 January 2025 to 31 December 2029. The G-ADBGS is designed to encourage the adoption of digital bonds in Singapore, a move seen as crucial for the development of the digital bond market and investor base. Notably, all issuers of digital bonds are eligible for the G-ADBGS, regardless of their previous bond issuance history in Singapore.
The G-ABGS has been extended for another five years, with adjustments to co-funding levels and per-issuance caps for eligible expenses. The co-funding for digital bond issuances under the G-ADBGS will cover up to two issuances per qualifying issuer.
Similar schemes have been introduced in other regions, such as the Hong Kong Monetary Authority’s Digital Bond Grant Scheme, highlighting a global trend towards supporting digital bond markets. The MAS’s initiatives are expected to foster growth in Singapore’s bond market, leveraging distributed ledger technology in capital market transactions.
These developments mark a significant step in Singapore’s efforts to remain at the forefront of financial innovation, particularly in the digital bond sector.
