Singapore offers an excellent ecosystem for companies to raise international capital. Companies such as those in China and India looking to regionalise and globalise, are increasingly turning to international bond markets to raise capital and diversify funding sources.
The Global-Asia Bond Grant Scheme aims to help companies with an Asian nexus seeking to raise capital through Singapore’s bond market for the first time and is valid till 31 December 2024.
See also: Singapore - the Gateway to Asia's Bond Market - Opening Address by Ms Jacqueline Loh, Deputy Managing Director, Monetary Authority of Singapore, at the Global Borrowers & Investors Forum – Asia on 21 September 2017.
The details of the scheme are as follows:
First-time companies and non-bank financial institutions with an Asian nexus.
Bond issued and listed in Singapore.
Minimum issuance size of $200 million or a bond programme size of at least $200 million with an initial issuance of at least $20 million for Sustainable Bond Grant Scheme applicants.
Minimum tenure of 1 year.
Denominated in Asian local or G3 currencies.
For SGD-denominated bond issuance, rated by credit rating agency regulated by MAS.
Credit rating fees
Listing agent fees
Eligible expenses are funded at a level of 50%, except credit rating fees for SGD-denominated bond issuance, which are funded at a level of 100%.
Rated: Cap of $800,000 if the issuance size is at least US$1 billion, or $400,000 for all other issuances.
Unrated:Cap of $400,000 if the issuance size is at least US$1 billion, or $200,000 for all other issuances.