Share Pledging & Financing

Borrowing via Collateralized Stock Loans in Singapore

Squadron Holdings, Ltd offers a variety of customized stock loans for listed companies and major shareholders in Singapore whose aim is to raise capital and borrow against their stock or securities, which trade on the Singapore Exchange (SGX).  At Squadron we work very closely with the shareholder and/or listed company to design a unique share financing agreement for every stock loan.  The share financing process is transparent and strictly confidential. Collateral stock loans in Singapore can be funded in less than a week.   We offer high loan to value ratios (LTV).  Shareholders can borrow up to 80% of the market value of the pledged stock.  Interest rates are low with flexible loan terms.  Most of our stock loans are non-recourse; the only collateral for the loan are the pledged securities.  No personal or corporate guarantees required.

Singapore is a highly developed market based economy and is considered to be one of the most transparent, successful and prosperous free market economies in the world. Singapore is the world’s fourth largest financial center and is the second freest economy in the world, behind only Hong Kong.  Singapore is the only nation in Asia to boast an “AAA” rating by the three major credit rating agencies.  The current corporate tax rate is capped at 17% and the personal tax rate is capped at 20%.  The World Bank ranks Singapore as the easiest place in the world to do business.  That may help to explain the fact thatSingaporehas more per capita US dollar millionaires then any other country in the world, over 15% of theSingapore’s households are millionaires. The Singapore Dollar (SGD) or Sing is the official currency ofSingapore.

Singapore Exchange (SGX) Clearing & Settlement Procedures

The Singapore Exchange (SGX) is open for daily trading (all day) from Monday to Fridays between 9:00am – 5:00pm. Trading sessions are closed on public holidays.  Additionally the Pre-Open trading commences at 8:30am – 9:00am.  Securities and Stocks traded on the Singapore Exchange (SGX) are cleared through the Central Depository (CDP) clearing fund.  The CDP provides depository, clearing and computerized book-entry settlement services.  The Pre-Settlement Matching Service (PSMS) is an electronic online and automated communication system that is part of SGX’s system and is linked to the Central Depository (CDP) system. PSMS is used for the reporting, pre-matching and affirmation of institutional trades executed by brokers and settlement agents. Only member companies of the exchange and settlement agents registered with the CDP as DAs have access to the PSMS system.

Standard execution for securities traded on the SGX is settlement on a T+3 basis.  Please note that Squadron offers collateralized stock loan programs with same day and DVP settlement for pledged securities and shares that trade on the SGX in Singapore.  Please contact us to learn about pledging stock for a collateralized securities loan.  Get the capital and cash you need by contacting Squadron today! Agents, brokers, financial advisors and arrangers are always welcome. Squadron will collaborate with your team to find the best loan program for your clients.