Singapore Teams With Banks to Launch Venture Debt Fund

Singapore’s government has tied with local banks to launch a S$500 million fund ($371.9 million) to finance local high-growth startups, seeking to address the growth concerns of small local enterprises.

Spring Singapore, a government agency that aims to help local enterprises and promote Singapore’s products and services, will share 50% of the risk. Small firms can apply for up to S$5 million for working capital, or to buy assets or make acquisitions.

The fund, which will complement current government loan schemes, was established as studies show that local enterprises sometimes face funding challenges to support their growth.

DBS, Oversea-Chinese Banking Corp. and United Overseas Bank are participating in the project to fund about 100 ventures.

Write to Gaurav Raghuvanshi at