Who can apply to be a Bond Issuer?
Qualifications for bond issuer:
1. Your business is registered in Thailand as a company limited or a public company limited
2. Your business has at least one Thai shareholder (at least 20% shareholding), who is actively operating the business and residing in Thailand.
What are the processes of issuing Crowdfunding Bonds?
There are 4 steps in issuing Crowdfunding Bonds
Step 1: Application and credit assessment
Company applies on Siam Validus platform
– proposal to raise funds i.e., business expansion, working capital, debt consolidation
– upload documents for credit assessment
After Siam Validus assesses the company for credit-worthiness based on their documents, Siam Validus assigns a credit grade that translates into an interest pricing for the debenture. Then the company must agree to proposed credit grade and terms to proceed with e-signature of documents.
Step 2: Subscribing to a Crowdfunding Bond
Once the Company agrees to credit grade and terms, Siam Validus will list the Crowdfunding Bond campaign on the platform. Investors can review the Crowdfunding Bond details before investing. Crowdfunding Bonds are issued when it is successfully funded, if the subscription is not successful, investors will receive a refund of the subscription amount.
Step 3: Issuing Crowdfunding Bond Certificate
The company reviews Crowdfunding Bond subscriptions and assigns Rights and Duties of Issuer and Bondholders. At this time, funds are transferred from the custodian to the company, and bond certificates are issued to the investors by the company.
Step 4: Ongoing obligations by Bond Issuer
Siam Validus maintains the Bond Registry on behalf of the company (the Bond Issuer) and tracks repayments to Investors over the duration of the Crowdfunding Bonds.
What if the Issuer defaults on a payment?
In case the issuer encounters a problem which may lead to a default. Please contact Siam Validus immediately for us to take care of, advise and find possible repayment options such as extension bond redemption period or change the payment date.
What documents does the Issuer need to provide in order to apply to issue Crowdfunding Bonds?
1. Certificate of Incorporation
2. List of all Shareholders
3. Company’s primary bank statement
4. Latest Audited Financial Statements
5. Company’s Credit Reports from National Credit Bureau
6. Main shareholder’s (>20% shares) copies of ID Cards (or Passports)
What's the repayment mechanism?
Bank transfers or direct debit.
Is early repayment allowed?
Yes, absolutely. If you wish to pay off your Crowdfunding Bond completely, please contact us and we can give you the settlement information.
Can I change the repayment date?
The Debt Crowdfunding Prospectus will set out your repayment schedule. If you require any changes to that schedule, please contact us.
What's the interest rate?
It can vary from 4-12% per annum depending on the SME profile, credit analysis, type of facility, amount and tenure.