Morrison & Foerster partner, Tessa Davis, was quoted in the article “Singapore Plans USD 68BN Bond Issue For Infrastructure Pipeline” by Inframation News on the Singapore government’s debt issuance plan to boost the infrastructure sector by financing major projects over the next 15 years. A bill will be tabled for the bond sale in parliament with the notes sold through the Significant Infrastructure Government Loan Act. Tessa shared “that infrastructure bonds have historically struggled to deal with risks during construction and are often relegated for refinancing in the post-completion or operational phase”.
"It would be an exciting development if the Singapore government can provide a benchmark for the standards and framework applied to resolve the issues with infrastructure bonds - especially at a time when banks have a decreasing appetite for long-tenure loans,” she said.
Tessa observed that “such assets also require heavy involvement from financiers, which bondholders may not be well-suited to manage, and the additional burden of the certification of ‘green credentials’ has also held back some market participants.”