Relaxed criteria for IF Scheme is extended to 31 January 2011. Find out more about the changes.

For who?

• Singapore-based companies who wish to expand overseas.
  The Singapore-based company or its overseas subsidiary can apply directly for the loans.
  
  
• Your overseas expansion must:
  
  
  • complement or be related to your Singapore business
  • result in economic spin-offs to Singapore (e.g. jobs or R&D in Singapore)
    
    
• Your company’s group turnover cannot exceed the maximum amounts listed in the table below:
  
  

  Type of Company		Maximum Group Turnover
  Trading Company*	Non-listed	< S$500 million
  	Listed	< S$300 million
  Non-Trading Company	Non-listed	< S$300 million
  	Listed	< S$300 million

  
  * Your company will be considered a trading company if more than 50% of your turnover comes from buying and selling goods.

For what?

• buy fixed-assets that will 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 loans

Types of Loan Facilities	Maximum Tenure	Maximum Quantum of Financing1
Asset-based financing: • Factories/Buildings/Land • Other fixed assets	• 15 years • 6 years	90%2
Structured loan	3 years	90%3
Banker's guarantee	5 years	100%

1. Maximum quantum of financing will be pro-rated based on the percentage of the Singapore-based company's shareholding in the overseas operations, unless the asset financed is for the Singapore-based company's equity injection purposes.

2. Based on valuation or purchase price whichever is lower.

3. Based on contract amount.

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 your 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$50 million is computed on a group basis, i.e. S$50 million is the maximum amount the parent company and all its subsidiaries and associated companies can obtain under the Scheme.

Changes from 1 December 2008 - 31 January 2011

	Before 1 Dec 2008	Changes from 1 Dec 2008 to 31 Jan 2011
Your maximum group turnover	Trading Company Non-Listed: < S$500M Listed: < S$200M	Trading Company Non-Listed: No change Listed: < S$300M
	Non-Trading Company Non-Listed: < S$200M Listed: < S$100M	Non-Trading Company S$300m for both non-listed and listed
Maximum loan amount	S$15M per borrower group	S$50M per borrower group
Risk sharing of loan default	Government: 70% PFI*: 30%	Government: 80% PFI*: 20%
Use of funds	Type of credit facilities: • Asset-based financing • Structured loan • Banker's guarantee	Type of credit facilities: • Asset-based financing • Structured loan • Banker's guarantee • Refinancing of loans for overseas asset acquisition and working capital for secured overseas projects (valid till 31 Jan 2010)

*PFI: Participating Financial Institution

Participating Financial Institutions

1. ABN AMRO Bank N.V.
2. AFC Merchant Bank 
3. DBS Bank Limited
4. GE Commercial Financing (Singapore) Ltd
5. Hong Leong Finance Limited
6. Industrial and Commercial Bank of China Limited
7. IFS Capital Limited
8. Maybank
9. Mizuho Corporate Bank, Ltd
10. ORIX Leasing Singapore Ltd
11. Oversea-Chinese Banking Corporation Limited
12. Standard Chartered Bank
13. The Hongkong and Shanghai Banking Corporation Limited
14. United Overseas Bank Limited

For more info

Internationalisation Finance Scheme
International Enterprise (IE) Singapore