About the Issuer and Loan Purpose
The borrower is a leading IT products and consumer electronics distributor headquartered in Singapore, with operations in 7 countries in ASEAN and India, 70% owned by a corporation listed on Shenzhen stock exchange since 2007, with market capitalization of approx. US$1.6 billion.
- Fully insured investment opportunity backed by an international AA insurance company.
- Strong market positioning of borrower – distributes key brands including Western Digital, Toshiba, Samsung and Synology with a well diversified list of over 200 distributors and corporate customers such as Best Denki, Challenger and Lazada.
- Well-structured security package – assignment of receivables, corporate guarantees and personal guarantees, along with trade credit insurance.
What would you gain or lose in different scenarios?
- Best Case Scenario
- Investor getting the investment amount of 5.5% p.a. to 6.5% p.a. payout (adjusted by day count)
- Worst Case Scenario
- Borrower defaults, Personal Guarantor defaults, and we get into recovery of the value of the loan via sale of the property. Recovery value would then be the net value of the sales proceeds against the loan amount outstanding.
Investor Proﬁle for this issuance should be MODERATE.
The nature of the investment is MODERATE.
Risk & Reward involved with the investment is MODERATE.