Licensed Crowdfunding Platform FundedHere To Help SGX-Listed Companies Raise Short-Term Bonds Of Up To S$5 Million Each
Singapore, 17 July 2016 – FundedHere announced today that it will open its crowfunding platform – the first licensed operator in Singapore – to help companies listed on the Singapore Exchange (“SGX”) to raise funds via short-term bonds of up to S$5.0 million each with an annual coupon of about 9%.
FundedHere, which received its Capital Markets Services (“CMS”) license from the Monetary Authority of Singapore on 18 March 2016, permitting it to deal in securities, said the companies listed on the SGX Main Board or Catalist intending to raise crowd-sourced funds from the Listco Bonds will not be required to issue a prospectus.
Only Accredited Investors (“AIs”) registered with FundedHere will be allowed to subscribe to the Listco Bonds. FundedHere has registered close to 1,000 AIs – individuals with at least S$2.0 million (US$1.5 million) in net personal assets, excluding the primary residence, or S$300,000 (US$225,000) in annual income.
The SGX-listed issuers must meet the following FundedHere criteria:
(1.) It must be majority owned by Singapore citizens;
(2.) It must have positive Net Tangible Assets; and
(3.) It must not be on the SGX Watchlist.
Once pre-qualified, the bond offering will be uploaded on its platform (www.fundedhere.com) and available for subscription for 30 days. While the platform currently offers equity crowdfunding investment from as low as S$5,000 each, FundedHere is targeting minimum subscription of S$50,000 each from registered AIs for the Listco Bonds.
FundedHere has commenced preliminary discussions with a few SGX-listed companies and expects to launch the first Listco Bond before the end of September this year.
FundedHere will levy a fee amounting to 1.5% of the funds successfully raised, on an annualised basis. FundedHere intends to offer bonds with tenures of one (1) to two (2) years. The annual coupon of about 9% will be paid on a quarterly basis.
The Listco Bonds must each be backed by a corporate guarantee. FundedHere is in discussions with an insurance agency to underwrite the Listco Bonds.
“The Listco Bonds will be an important extension of our licensed equity crowdfunding and crowdlending platform as listed companies can reach out to our pool of AIs, some whom seek higher yields. As the Listco Bonds will be issued by listed companies, they will offer more security compared to startups,” said FundedHere CEO Mr. Michael Tee.
FundedHere believes that the introduction of Listco Bonds is timely as many smaller listed companies in Singapore face challenges in secondary fund raising due to insufficient liquidity and current low share prices.
FundedHere has successfully helped several privately held companiesraise short-term funds through licensed crowdlending, at an annual interest rate of about 18%.
FundedHere is the first registered private equity and lending-based crowdfunding platform for promising businesses in Asia issued by Monetary Authority of Singapore (MAS). FundedHere has built an ecosystem for investors and businesses, utilizing Singapore as a springboard for Asia.