Singapore-based FundedHere is listing S$2 million worth short term crowdfunded bonds (ListCo Bonds) for Metech International (SGX:QG1 – MeTech). This past July, FundedHere announced its intent to help SGX listed companies sell bonds to raise capital. MeTech is now the first company to leverage this funding opportunity.
The ListCo Bonds are expected to carry an annual coupon rate of 8%, with a 24-month tenure. The company will use the proceeds to expand the supply chain management business. FundedHere also announced that SGX’s Central Depository (CDP) will be the depository for the ListCo Bonds. Under this arrangement, lenders will receive interest payments in their CDP accounts. FundedHere is the first private funding platform to use CDP services.
The arrangement between CDP and FundedHere was announced at an event during which FundedHere updated executives of Singapore-listed companies about its ListCo Bond opportunity.
FundedHere may raise up to S$5 million by issuing one to two year bonds for any SGX-listed company without issuing a prospectus. These investment opportunities are only available to accredited investors registered with FundedHere will be allowed to subscribe to the bonds issued by these companies. FundedHere has registered close to 1,000 of such investors, defined as individuals with at least S$2.0 million (US$1.5 million) in net personal assets, excluding the primary residence, or S$300,000 in annual income.
FundedHere says it has registered nearly 1,000 accredited investors.
Once pre-qualified, the bond offering will be uploaded on FundedHere’s online platform and available for subscription for 30 days.
While the platform is currently open for equity crowdfunding from as low as S$5,000 each, FundedHere is targeting minimum subscription of S$50,000 each from AIs for the ListCo Bonds.
“It’s not easy for some listed firms to raise funds via other traditional channels given the current market environment. So we are extremely pleased to have the support of CDP as FundedHere becomes an alternative fundraising platform for these companies,” said FundedHere CEO Michael Tee.
Simon Eng, Chairman of MeTech International, said that for some companies it is not practical to raise equity capital.
“FundedHere provided us with a viable alternative, one that is simple and hassle free,” said Eng.
Launched in March 2015, FundedHere obtained its Capital Market Services License from the Monetary Authority of Singapore, permitting it to issue shares, in March of 2016.
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