They can now borrow for up to $5m.
The Ministry of Trade and Industry announced the enhancement to IE Singapore’s Internationalisation Finance Scheme (IFS) and the reintroduction of SPRING’s Bridging Loan (BL) for companies in the Marine and Offshore Engineering (M&OE) industry.
These measures will help to address the intensifying financing challenges faced by the M&OE industry in recent months, as it experiences a unique and prolonged slowdown.
The schemes aim to facilitate M&OE companies’ access to working capital and financing. The BL will help Singapore-based M&OE companies finance their operations and bridge short-term cash flow gaps.
Eligible companies will be able to borrow up to S$5m each, with a loan tenure of up to six years. The maximum loan quantum for each borrower group is $15m.
Enhancements will also be made to IE Singapore’s existing IFS, which provides project/asset financing support for companies. The maximum loan quantum will be raised to S$70 m per borrower group from the current S$30m per borrower group for M&OE companies.
These one-off measures, developed in consultation with industry players, are targeted at stabilising the M&OE sector, as it copes with the prolonged weakness in oil prices amidst the slowdown and uncertainty in the global economic environment.
The Government will take on 70% of the riskshare for both BL and IFS.
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