DEBENTURE

Debentures are usually an alternative means for financing projects.

Debentures are a form of debt which are secured against a charge on any physical assets or other collateral. The tenure of the debenture depends on the nature of the debt and bears a fixed interest rate (coupon).

SECURED DEBENTURES
  • A personal guarantee is to be provided
  • Security Cover of at least 1.5 times of the amount contracted
  • Floating and fixed Charge to be provided by the Company
  • The redemption of debentures at a cumulative interest at 8% p.a. and capped at 11% p.a.
UNSECURED DEBENTURES
  • Solid business model and good corporate governance framework
  • Floating Charge on Company
  • The redemption of debentures at a cumulative interest rate (to be determined).

Repayment is usually at a cumulative interest rate (to be determined).

  • The use of debenture encourage long-term funding which can be used to grow a business.
  • Interest paid on Debenture is a tax-deductible expense.