Singapore-listed METech to raise $1.45m (£1.16m) via bonds on crowdfunding platform


Singapore-listed waste management company METech International will raise $1.45 million (£1.16 million) through issue of bonds via crowdfunding, a way resorted to by many firms for raising funds as market conditions tighten.

The company will issue non-convertible bonds with a two-year tenure and carrying a coupon rate of 8 per cent to be paid out quarterly, the company said in a statement. An interest of 12 per cent will be imposed on late payment and will apply to the coupon rate as well as the principal sum.

The entire amount of $1.45 million (£1.16 million) will be dedicated to the supply chain management business of the company. METech is confident that the supply chain business would generate returns at least twice the coupon rate.

As the largest shareholder of the company, Simon Eng will have to pledge his equity stake for the bond issue.

Explaining the move of raising money through crowdfunding, the company said, “Based on current market conditions, the company is not confident that it will be able to get loans from traditional lenders.”

The company is also not confident that it can raise capital from the security market, given its current share price and the depressed stock market.

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The author Paul