SINGAPORE – Local companies looking to expand into Europe and beyond will now be able to leverage a new scheme that allows them to obtain loans directly from selected foreign lenders, with EnterpriseSG sharing 50 per cent of the risk.
The Enterprise Financing Scheme – Foreign-based Financial Institutions (EFS-FFI) currently offers international trade and commodity financing of up to $8 million for a period of up to a year.
Over the longer term, financing options will be gradually extended to include loans for working capital, fixed assets, projects, as well as mergers and acquisitions, which will have different quantum and tenors.
To be eligible for the scheme, companies must have annual sales turnover of $100 million or less for working capital loans, or $500 million or less for other types of loans, in addition to meeting other criteria.
The move is in line with the push to help Singapore companies break into new markets and take advantage of the opportunities there, said Mr Geoffrey Yeo, EnterpriseSG assistant managing director for capabilities, urban systems and solutions, adding that “financing is a key enabler”.
Credit Europe Bank (CEB), a niche lender headquartered in Amsterdam, is the first to participate in the scheme.
“The access to CEB’s networks, expertise and funding can help more companies accelerate their market expansion – not just in Europe, but in markets worldwide,” noted Mr Yeo.
The Dutch lender operates in markets such as the Netherlands, Germany, Malta, Romania, Switzerland, Ukraine and Turkey, serving just under a million retail and corporate clients worldwide, particularly from emerging economies.
CEB chief excutive Senol Aloglu said: “Trade and commodity finance are core components of our business, and we have decades of experience.”
“It aligns with our ambition to further diversify our customer base and to serve more customers
