For Marine & Offshore companies, the Government has introduced two financing schemes for the sector to overcome the downturn in this sector.

These schemes include:

  1. Bridging Loan for Marine & Offshore Engineering companies (BL-MOE)
  2.  Internationalisation Finance Scheme (IFS) – Marine and Offshore Engineering

We provide the details of these schemes below:

Bridging Loan for Marine & Offshore Engineering companies (BL-MOE)

Marine & Offshore companies in Singapore have access to bridging loans of up to S$15 million. The purpose of these loans is to bridge a temporary cash-flow shortfall situation and daily operations. The tenor of the loan could be up to 7 years.

Enterprise Singapore shares the risk of loan defaults with PFIs in the event of company insolvency.

Eligibility:

Companies should meet the following criteria:

  • At least 30% local shareholding
  • Marine & Offshore companies registered and operating in Singapore.
  • Sub-categories of Marine & Offshore Engineering include:
    • Shipyards
    • Contractors to shipyards
    • Offshore services providers
    • Exploration & Production (E&P) companies
    • Oil and gas (O&G) equipment and services companies
    • Suppliers to O&G equipment and services companies

Internationalisation Finance Scheme (IFS) – Marine and Offshore Engineering

Compared to BL-MOE, the IFS – Marine and Offshore Engineering offers funding support for Marine & Offshore companies in Singapore with loans up to S$70 million. The funding is higher than the other government scheme, BL-MOE, which provides temporary loans to eligible companies.

The loans could be made in the following categories:

  • Asset-based financing to purchase fixed assets, or to purchase/construct factories.
  • Structured loans to finance the working expenses of secured projects.
  • Banker’s guarantee for issuance of guarantee facilities for secured projects which can take the form of advance payment guarantee or performance guarantee.
  • Merger and Acquisition financing to finance acquisition of equity stakes in businesses for expansion. The acquisition should be in line with the applicant’s core business.

Eligibility:

Companies should meet the following criteria:

  • Marine & Offshore companies registered and operating in Singapore.
  • At least 30% local shareholding