Page 297 - 2019 6th AFIS & ASMMA

We ourselves have issued a green bond; DBS has issued a green
bond for the purpose of financing our purchase of the building that we
operate, which is a green building, certified. And we've also used that for
deployment of and alignment with our ESG principles. What is perhaps
more interesting now is that we've actually done the first social impact
model. The size is not big, but it's a Women's Livelihood Bond, and
the proceeds are basically used to provide access to capital, credit and Session I
essential goods and services to a particular interest group. In terms of
refurbishment, we have now seen CDL Properties, which is a developer,
and they have issued green bonds for the purpose of refurbishment,
and thinking on technology, provide green, and perhaps renewable,
technologies we put into their flagship properties. So, with those
quick examples I would end my presentation and open this for further
questions and answers in the panel discussion. Thank you very much.

» Moderator | You Tay Lee
If you look at where the government's intervention comes, the Thank you, so that's the end of a long series of three presentations.
government has introduced the Asian Bond Grant Scheme, and this It's a very heavy concept to absorb within an hour. Luca Bertalot talked
encourages first-time issuers to consider issuing in Singapore. The about mortgage financing mechanism by EEMI(Energy Efficient
government provides a cash rebate, a grant of up to 400,000 Singapore Mortgage Initiative) through EeMAP(Energy Efficient Mortgage Action
dollars, for first-time issuers. Plan) and EeDaPP(Energy Efficient Data Protocol and Portal), and used
examples of 'heat or eat' dilemma. That was very impressive. Maureen
Moving on from that, the government now has a sustainable Bond Schuller talked about the perfect match with capital bond with the
Grant Scheme. The Bond Grant Scheme pays for the annual reviews of green issuance. And Colin Chen gave us an excellent presentation of
up to 200,000 Singapore dollars. As a result, you have seen through the what's going on in the Singapore market, in real estate and ESG market.
chart on the right, there is an increase in the bond issuance of volumes Meanwhile as we are waiting for questions from the floor, may I ask a
coming out Singapore for first-time ratios; we hope to see more of this. question? I'm not really an expert, so my question could be wrong. This
I'll jump into some case studies, just broad case studies; we will leave it question applies to both of you, Luca and Maureen, on the mortgage
for the panel if you have further questions. For financial services, one of financing mechanism; it is really based on an assumption that there is
the largest green bonds that has been issued at Singapore comes from a risk mitigation effect, where you make a virtuous circle between the
Manulife, a Canadian life insurer. They basically issued a tier 2 fixed rates value of property and the lower probability of default. But what if the
sub(ordinated) green bond. What have they used it for? They have come value of property doesn't really go up as you anticipate? The economy
up with their own taxonomy in terms of UOP, and they have allocated boom and bust happens, so when all of a sudden, the economy just chills
the UOP to basically the projects which satisfies the criteria. out, and all the prices go down, then what's going to happen? Will this
mortgage financing mechanism work all the time?

298 2019 6th AFIS & ASMMA Annual Meeting 299