Banks are bidding for the largest issue yet from Housing & Development Board, totalling up to S$1.6 billion ($1.1 billion).

The Singapore statutory board has asked banks for proposals to sell a seven-year bond for a target size of S$1 billion and a S$600 million greenshoe. If it does achieves the maximum deal size, it will beat its largest single issue, when it sold a S$1.5 billion 1.875 percent four-year issue in November 2013.

Bids are due to be submitted on Monday.

HDB obtained its first rating in October when Moody's scored it Aaa, the top rating, increasing its appeal to the asset liability management desks of banks.

The rated HDB notes will now have a zero risk-weighting and qualify as Level 1 high-quality liquid assets under the Monetary Authority of Singapore's rules on liquidity coverage ratios. Previously, the unrated notes qualified as a Level 2 HQLA and were subject to a 15 percent haircut under LCR rules.