HDB Annual Report 2020/2021

FINANCING OF PUBLIC HOUSING HDB’s annual deficit is fully covered by a government grant. In addition, HDB receives a government grant to preserve the capital gains attributable to past governments on disposal of the protected assets, in accordance with the Constitution of the Republic of Singapore. The cumulative government grants provided to HDB since its establishment in 1960 amounted to $38,571 million. The main loans which finance HDB’s operations comprise: i) Mortgage financing loans that finance the housing loans granted by HDB to purchasers of flats under the public housing schemes. ii) Housing development loans that finance the development programmes and operations. iii) Bonds that finance HDB’s development programmes, working capital requirements, and refinancing of existing borrowings. During the year, HDB raised $3.90 billion and redeemed $2.45 billion of unsecured Fixed Rate Notes. Total outstanding Notes under the Medium Term Note Programme was about $26 billion as at 31 March 2021. TOTAL OUTSTANDING LOAN $ Billion 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 FY2017 FY2018 FY2019 FY2020 $40.6B $40.4B $40.3B $38.1B $22.3B $0.2B $23.0B $24.4B $25.8B Mortgage financing loans Housing development loans Bonds 57 HDB ANNUAL REPORT 2020/21