Under Internationalization Finance (IF) Scheme of Singapore government any business enterprise that requires funds to expand overseas can avail of a loan of S$50 million to buy fixed assets and finance the overseas projects or orders. It is basically for Singapore based companies wanting to expand overseas. The Singapore-based company or its overseas subsidiary can apply directly for the loans.
Any Companies overseas expansion must:
- Complement or be related to the Singapore business.
- Result in economic spin-offs to Singapore. (e.g. jobs or R&D in Singapore).
The Companies group turnover cannot exceed the maximum amounts listed in the table below.
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Type Of Company
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Listed/Non Listed
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Maximum Group Turnover
|
|
Trading Company
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Non-listed
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<S$500 million
|
|
Trading Company
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Listed
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<S$300 million
|
|
Non Trading Company
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Non-Listed
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<S$300 million
|
|
Non Trading Company
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Listed
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<S$300 million
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For What
The loan can be used to:
- Buy fixed-assets that would be used overseas.
- Raise working capital for secured overseas projects.
- Raise working capital for confirmed overseas sales orders.
- Issue banker's guarantee for secured overseas projects.
Types of Loan
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Types of Loan Facilities
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Maximum Tenure
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Maximum Quantum of Financing
|
|
Asset based financing
· Factories/Buildings/Land
· Other Fixed Assets
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15 years
6 years
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90%
|
|
Structured Loan
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3 years
|
90%
|
|
Banker's Guarantee
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5 years
|
100%
|
Interest Rates and Re-Payment
- Interest rates, repayment structures and collateral requirements will be determined by the participating financial institutions. The interest rate may be fixed or floating.
- Repayment period is also tailored to your needs.
Things to Note
- If the overseas subsidiary is applying for the scheme, the Singapore-based parent must be willing to put up a corporate guarantee.
- The maximum loan amount of S$15 million is computed on a group basis i.e. S$15 million is the maximum amount the parent company and all its subsidiaries and associated companies can obtain under the scheme.
