Upfront Cost For Un-rated Companies Issuing Commercial Paper
- Client need only pay S$30,000 upfront for lawyer and other advisory fees to compile offer document, draft loan agreement, due diligence, transaction structuring and distribution by international broker's distribution team. This contrasts well with the half million Singapore dollar exploratory fees for a Singapore IPO and the hundreds of thousands of dollars for an investment agency rating by an international rating agency for commercial paper rating.
- Potential borrowers will have to appoint and negotiate fees with internationally recognized auditors and valuation firm. We can help client source for cost competitive fees from internationally recognized auditors and valuation firm in Singapore. If potential borrowers already use internationally recognized firms, this step is not necessary.
- The issuing bank and trustee bank are appointed in Singapore. Success fees will drive the large part of fee payment for legal, due diligence, structuring, distribution fees and bank charges which are collected at the tail end of the transaction cycle, i.e. at the funds disbursement stage from proceeds of the bond issue.
- In the event of non-success of the transaction for whatsoever reasons, client's upfront payment of S$30,000 will be treated as abortive fee, which is non-refundable. Client will not be liable for further payment for legal, due diligence, structuring and distribution fees that may have been incurred. Clients in the course of a transaction when visiting Singapore will visit the international lawyer and international broker's operations in Singapore to appreciate the value we are offering for our capital markets service.