Singapore’s new 1,000-bond bond issue was announced in a news conference.
The issuance will bring the total issuance of bonds issued by the government to 3,000 million, with a yield of 0.8%.
Singapore’s bond issuance is the third highest in the world after Hong Kong and Japan.
The issue of the new bond will be financed with 0.076 trillion Singapore dollars, which are held in Singapore’s central bank.
The government is planning to sell its holdings in the bond, which was issued in September, to finance a number of projects, including a new elementary school and a new science center.
Bonds issued by Singapore have been trading at about 8.5% over the last year, up from a peak of 6.5%.
In the past, Singapore has been a safe haven for investors as its debt-to-GDP ratio remains below the eurozone average, and its debt burden is below the UK’s.
But the country is currently in a fiscal crisis, with the central bank printing nearly $1.5 trillion to support the economy.
Singan bonds have been a favorite among financial institutions due to the government’s promise to hold down the interest rates and keep inflation low.
On Wednesday, the Singapore Stock Exchange announced that it would begin issuing a new bond for the next fiscal year, in the hope that it will ease pressure on the economy by allowing the central government to reduce the size of its bond portfolio.
Read more: Singapore’s bond yields: What you need to know