Enterprise Financing Scheme (EFS) - Merger & Acquisitions (M&A)
This programme helps enterprises finance the acquisition of local or overseas target enterprises, with the intent of internationalisation.
As announced at Budget 2022, the Enterprise Financing Scheme - Mergers & Acquisition (EFS-M&A) will be enhanced for 4 years, from 1 April 2022 to 31 March 2026, to include domestic M&A activities.
This supports enterprises to scale and expand through M&A – including venturing into complementary businesses and emerging sectors.
Up to S$50 Million loan per Borrower / Borrower Group*
Note: Borrowers are subject to an overall borrower group limit of S$50m for EFS M&A. In addition, there is an overall loan exposure limit of S$50 million per borrower group across all facilities*Refer to "Critical Information" for more details.
You are:
- A Singaporean enterprise looking to internationalise by acquisition of local or overseas larger enterprises.
You need to:
- Be a business entity1 that is registered and physically present in Singapore,
- Have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership,
- Have Group Annual Sales Turnover of not more than S$500 million2.
*Refer to "Critical Information" for more details.
1. ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the scheme. Approval of the loan is subject to the PFI’s assessment.
2. Annual sales turnover and employment size is computed on a group basis.
ESG risk share is at 50%.
Young enterprises1 or enterprises operating in a challenged market2 may receive a risk share of 70%.
The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.
Borrower Group consists of the following:
- Borrower; and
- Corporate shareholders holding more than 50% at all levels up; and
- Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
- Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all levels down
Repayment Period: Up to 5 years
Interest Rate: Subject to PFIs' assessments of risks involved
1. Young enterprises refer to firms formed within the past 5 years with at least 1 employee, and more than 50% equity owned by individuals.
2. Challenged markets refer to countries with Standard & Poor’s (S&P) rating BB+ and below, including non-rated countries.
Interested enterprises may approach any of the following Participating Financial Institutions to apply for the loan with the required supporting documents (subject to banks’ credit approval).
List of Participating Financial Institutions can be found here.
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