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Why we’re staying away from the 50-year Green SGS (Infra) bond
By Beansprout  •  August 5, 2022
We’d give the SGS Green (Infra) bond a miss as the yield is not attractive enough for us to invest in such a long-tenor bond given the risks. TL;DR
  • The inaugural Green SGS (Infrastructure) bond offers investors an effective interest of 3.04% per annum. Maturing in 2072, investors will only receive their principal back after 50 years. 
  • If investors want to sell the bond before maturity, they would face interest rate risk and may incur a loss. In particular, a 50-year bond would be more sensitive to interest rate changes than those with a shorter maturity. 
  • As the first 50-year bond issued by the Singapore government, it is hard to tell what the liquidity of the bond would be like in the secondary market. 
  • We’d give the SGS Green (Infra) bond a miss as the yield is not attractive enough for us to invest in such a long-tenor bond given the risks. 
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By Beansprout
Hi, I’m Gerald! I have been working in investment analysis for more than 12 years. Often, I encounter everyday investors who find it difficult to invest. At Beansprout, we believe that with the right tools and knowledge, everyone can be an investor. Hence, we founded Beansprout to make quality investment insights more accessible. We hope that you can join us on this journey to grow your financial knowledge and confidence as an investor.
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