MAS' Asian Bond Grant Scheme

On 9 January 2017, the Monetary Authority of Singapore launched the Asian Bond Grant Scheme (the "Scheme") to further develop Singapore’s bond market. The Scheme aims to co-fund eligible expenses attributable to the issuance of Asian bonds in Singapore (including arranger’s, legal, auditors’, credit rating and listing fees). The co-funding would only apply once for each qualifying issuer. The Scheme is valid between 1 January 2017 and 31 December 2019.

Scheme criteria:

Qualifying
Issuer:

First time Asian companies and non-bank financial institutions with global
headquarters in an Asian country including ASEAN, China, India, South Korea,
Japan, Australia and New Zealand (together, the "Qualifying Jurisdictions")

Qualifying
Currencies:

All local currencies in the Qualifying Jurisdictions and the G-3 currencies

Qualifying
Issuance:

  • the bonds are Qualifying Debt Securities (i.e. meet the "substantially arranged in Singapore" conditions) in accordance with the Income Tax (Qualifying Debt Securities) Regulations;
  • the issue size is at least SGD 200 million (or its equivalent in another currency);
  • the bonds have a non-redeemable tenor of at least 3 years;
  • the bonds are listed on the Singapore Exchange;
  • more than half of the gross revenue from arranging the issue is attributable to Financial Sector Incentive companies in Singapore; and
  • the bonds are rated by any of S&P, Moody’s and Fitch for any SGD denominated issue

Per-Issuance
Cap:

50% of the total eligible expenses, capped at:

  • SGD 400,000 where the qualifying issuance is rated by any of S&P, Moody’s and Fitch; and
  • SGD 200,000 where the qualifying issuance is not rated