MAS SGD Facility for ESG Loans

The MAS SGD Facility for ESG Loans (“Facility”) provides lower-cost funding for banks and finance companies to grant loans under Enterprise Singapore’s Enhanced Enterprise Financing Scheme – SME Working Capital Loan (“EFS-WCL”) and Temporary Bridging Loan Programme (“TBLP”). The EFS-WCL helps Singapore-based small and medium enterprises (“SMEs”) access financing for their operational cash flow needs, while the TBLP provides additional cash flow support for companies in all sectors to meet their working capital needs. Banks and finance companies participating in the EFS-WCL and TBLP can apply for funds at the Facility until April 2021. The reduction in funding cost will help to lower the interest rates charged to eligible corporate borrowers.

Key Details

Eligible Counterparties	Participating banks and finance companies in the EFS-WCL and TBLP administered by Enterprise Singapore (“ESG Loan Schemes”)
Transaction Type	Collateralised borrowing or Repurchase transaction
Tenor	2-years
Rate	Fixed rate of 0.1% p.a
Amount	Drawdown allowance for each Eligible Counterparty will be based on the total amount of loans disbursed to local enterprises under the ESG Loan Schemes (i.e. with 90% risk share from the Government), which are not using ESG funds.
Eligible Collateral	Category A1: Singapore Government Securities (“SGS”) Bonds Category A2: Other S$ debt securities issued by any Singapore statutory board and AAA-rated or AA-rated public sector entity, supranational, sovereign, sovereign-guaranteed company or non-financial company Category C: Loans disbursed to local enterprises under the ESG Loan Schemes (i.e. with 90% risk share from the Government), which are not using ESG funds
Initial Haircuts	Collateral haircuts will be sent to Eligible Counterparties upon request.
Application and Settlement Window	Monthly, from April 2020 till April 2021. Application Schedule (410 KB) (updated as at 01 June 2020)
Terms and Conditions	Available to Eligible Counterparties upon request.