Singapore has implemented 3 Internationalisation Finance Schemes to support companies in their overseas expansion. These schemes cater to different categories of companies and they include:

  1. Internationalisation Finance Scheme (IFS)
  2. Internationalisation Finance Scheme for Non-Recourse (IFS-NR)
  3. Internationalisation Finance Scheme (IFS) – Marine and Offshore Engineering

We provide the details of these schemes below:

Internationalisation Finance Scheme (IFS)

The IFS is for Singapore-based companies seeking to venture overseas. The scheme offers indemnification to Participating Financial Institutions (PFIs) who provide the facility.

With IFS, companies have access to financing facilities provided by PFI in the following categories:

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

The scheme is slated to be included in the new Enterprise Financing Scheme in October 2019.

Eligibility:

Companies should meet the following criteria:

  • Registered and operating in Singapore with main business functions in Singapore
  • Annual sales revenue (including subsidiaries) of less than S$500 million (for trading companies) or less than S$300 million (for non-trading companies)

 

Internationalisation Finance Scheme for Non-Recourse (IFS-NR)

The IFS-NR is for Singapore-based companies developing local and regional infrastructure projects. Eligible companies can access up to S$50 million in project financing for local and overseas development projects.

Enterprise Singapore co-shares default risks with PFIs to look beyond the borrowers’ balance sheet and instead rely on project income streams when extending project finance loans.

Eligibility:

Companies should meet the following criteria:

  • Registered and operating in Singapore with main business functions in Singapore
  • Annual sales revenue (including subsidiaries) of less than S$1 billion (for trading companies) or less than S$500 million (for non-trading companies)
  • The qualifying Singapore entity must have at least 30% equity share in the Special Purpose Vehicle
  • The overseas development project must complement the core operations of the Singapore company and result in clear economic spin-offs to Singapore.

 

Internationalisation Finance Scheme (IFS) – Marine and Offshore Engineering

The IFS – Marine and Offshore Engineering scheme 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, Bridging Loan for Marine & Offshore Engineering companies (BL-MOE). BL-MOE only 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 an advance payment guarantee or performance guarantee.
  • Merger and Acquisition financing to finance the 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