Singapore sells 30-year green bond, raising $1.9 billion

Yield set at 3.30%, coupon rate at 3.25%

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Proceeds for green investments, expenditures

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Adds to growing activities of green bonds sale globally

May 21 (Reuters) - Singapore's government sold a S$2.5 billion ($1.9 billion) 30-year green bond on Tuesday after pricing at a yield of 3.30%, according to an announcement on the central bank's website and a term sheet viewed by Reuters.

The long-dated bond has an initial price guidance of about 3.46%, an earlier term sheet on Tuesday showed. Coupon rate stood at 3.25%, the website and term sheet showed.

The Monetary Authority of Singapore, the country's central bank, is issuing the bond of behalf of Singapore's government.

Money raised from the 30-year bond will be used on projects covered under the city-state's green investment framework, the earlier term sheet said.

The issuance by Singapore adds to the growing practice of selling green bonds globally to fund environmentally-beneficial expenditures.

Singapore last year raised S$700 million ($519.56 million) in a 50-year green bond which was the city's first green bond issuance. Proceeds from that deal were used to fund infrastructure investments, local media reported at the time.

Tuesday's deal is being led by Citigroup, DBS Bank, HSBC, Standard Chartered Bank and United Overseas Bank (UOB).

"Significant capital and a range of financing instruments are required for Asia to decarbonise while enabling sustainable economic growth," said Clifford Lee, Global Head of Investment Banking at DBS Bank.

"Singapore is well-placed to accelerate the development of ESG financing to support this transition," he added. "This is evidenced by a strong track record of ESG-linked issuances from its public and private sector, which have been meaningfully oversubscribed." ($1 = 1.3464 Singapore dollars) (Reporting by Scott Murdoch and Yantoultra Ngui; Editing by Muralikumar Anantharaman, Subhranshu Sahu, William Maclean)