Singapore hopes for infra debt boom with guarantees

The Lion City hopes to attract international debt investors with a mix of guarantee-backed and sovereign infra debt as it looks to fund a major expansion of Changi Airport.
Singapore's Changi Airport will be extended, partly with debt financing.
Singapore's Changi Airport will be extended, partly with debt financing.

In a move that could inject fresh energy into the Lion City's debt market and be studied elsewhere, the Singapore government is hoping debt guarantees will help it attract international funding for its infrastructure development, starting with its flagship Changi East project.

As part of a “differentiated fiscal strategy”, Singapore Finance Minister Heng Swee Keat announced in his budget speech this week that it will guarantee debt for the project, which includes the development of a fifth airport terminal and a new runway.  

“This policy will act as a catalyst to deepen our debt markets given the different issuers and tenors, and, hence, will...

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