Overview
Corporate financing accounts for the majority of Singapore’s bond market as well as its commercial lending portfolio
The corporate finance industry includes funding sources, capital structuring, accounting and investment decisions. The corporate finance industry is part of Singapore’s finance and insurance sector, which contributed to approximately 15% of its national GDP in 2021, valued at about SGD 74 billion. Singapore’s banking industry workforce was 173,000 in 2020, which had grown by 21,000 new jobs from 152,000 employees in 2016.
Singapore’s bond market’s outstanding debt was valued at SGD 484 billion in 2020, growing by around an 11% CAGR from 2016 to 2020. SGD 224 billion worth of debt was issued in 2020, of which around 64% was from corporate issuers, including Singapore Airlines’ SGD 850 million 5-year bond and an SGD 4 billion 10-year bond. Issuances by financial institutions accounted for about 25% of new issuances, while statutory boards accounted for around 12% for the year 2020. Singapore also has the largest real estate investment trust (REIT) market in Asia, next to Japan, with a market capitalization of USD 80 billion as at 31st May 2022.
Corporate lending accounts for the majority of Singapore's commercial banking loans and advances, which was 63% as of May 2022. The real estate and property development industry is the largest recipient of loans and advances under the corporate lending portfolio, at around 20% in May 2022. Loans to the financial and insurance industry accounted for around 14% of total loans and advances during the same period.
With 962 licensed fund managers, Singapore’s asset management industry recorded approximately SGD 5 trillion assets under management (AUM) in 2020, where the private equity and venture capital AUM was SGD 391 billion. Singapore drew the largest amount of private equity investment in the Southeast Asian region in 2021, recording around USD 17 billion on 104 deals. Singapore is one of the key private equity/venture capital markets in Southeast Asia, where the region accounts for more than 25% of the global private equity market.
The total value of Singapore’s merger and acquisition (M&A) deals in 2021 was around USD 175 billion and investment banking fees in 2021 amounted to USD 1 billion, of which about 91% accounted for related advisory fees for M&A deals.
In 2019 it was estimated that Singapore had around 20,000 practitioners in the financial advisory industry, covering areas such as insurance, banking and financial advice. Meanwhile, the top 30 accounting and advisory firms in Singapore have around 18,000 professionals working in the accounting and advisory industry, where the top 4 firms dominate the industry, with PwC employing around 3,700 professionals, followed by EY with 3,500, KPMG with 3,160 and Deloitte with 2,900 employees in 2020.
Key Trends
Corporate financing markets post growth despite economic shocks caused by COVID-19 pandemic
Despite the pandemic impacting global capital markets, Singapore’s corporate debt market managed to post a 4% YoY growth in total debt outstanding for 2020.
The asset management segment saw a 17% YoY growth despite the pandemic, reaching around SGD 5 trillion, driven by the uptick in AUM for private equity and venture capital, which grew by 54% YoY in 2019. Singapore was the only private equity market in the Southeast Asian region to have recorded growth despite the pandemic, with 54 deals valued at around USD 6 billion in 2020.
Corporate investments accelerate post-pandemic and are poised for strong growth
In 2021, Singapore’s private equity and venture capital deal value was up by around 95% YoY, from USD 6 billion to USD 12 billion, on 104 deals. Singapore also recorded the highest exit value in the private equity market in the region, at USD 7 billion in 2021, driven by the ride hailing platform Grab’s initial public offering (IPO). M&A deals for 2021 grew by 70% YoY, from USD 103 billion in 2020 to USD 175 billion 2021.
As Singapore accounts for around 75% of Southeast Asian private equity and venture capital investments, the growing investor interest in the region's tech unicorns is expected to continue to drive investment in favour of Singaporean startups, further aided by the government’s support schemes and the country’s established startup ecosystem.
Singapore aims to retain market leadership in the sector through digitalization and promoting green, social and sustainable investment
The Monetary Authority of Singapore (MAS) has launched two initiatives in order to promote the growth of Singapore’s corporate debt market. This includes the Global-Asia Bond Grant Scheme, supporting first-time issuers by co-funding eligible issuance-related expenses for up to SGD 800,000 for a rated issuance and SGD 400,000 for an unrated issuance, valid until 31 December 2024.
MAS also launched the Sustainable Bond Grant Scheme (SBGS), initially known as the Green Bond Grant Scheme (GBGS) in 2017, with the aim of encouraging issuers of green, social and sustainability bonds by funding up to SGD 100,000 or 100% of eligible expenses on engaging external reviews to ascertain their green, social and sustainability bond status. Up until the first half of 2021, the scheme had supported issuances worth over SGD 18 billion in green, social,
sustainability and sustainability-linked (GSSS) bonds in Singapore.
Singapore is also taking strides towards digitalization, where DBS Group Holdings Ltd issued its first security token, digital notes due 2021 on the DBS Digital Exchange in 2021, worth SGD 15 million in principal. These digital notes are issued on the blockchain managed and operated by the DBS Digital Exchange, which aims to diversify debt instruments and allow more efficient access to the capital market.
In addition, Singaporean banks have accelerated digitalisation, increasing the demand for technology staff in the financial industry. MAS estimates over 9,400 new hiring opportunities in the financial sector in 2022. It is notable that FinTech investments in 2021 reached an all-time high with around USD 4 billion, up from approximately USD 3 billion in 2020. In addition, investment bank J.P. Morgan, partnering with DBS Bank and Temasek, has introduced a multi-currency, cross-border settlement platform, leveraging blockchain technology, initiating the digitalization of capital markets in the region. MAS has partnered with banks and financial institutions for talent development by providing training and internships for polytechnic graduates and other students.
However, CFA Institute’s fourth global trust survey in 2020 revealed that the trust in Singapore’s financial services industry dropped by 11 percentage points to 36% in 2020 compared to the 47% in 2018. Key reasons for this drop included higher fees and conflicts of interest in recommending a product earning advisors the highest commission.
However, the government has a positive outlook on the private equity and venture capital market, supported by the country’s startup ecosystem, technology and innovation increasing the accessibility of private equity and venture capital investments, and a regional hub for premier derivatives in the Asian region, which allows an effective hedge against investment risks.
Key Statistics
- The total asset value of the corporate sector in 2019 was SGD 11 billion and the total equity value was SGD 4 billion.
- As of 2021, Singapore had around:
131 banks,
61 Licensed Financial Advisors,
667 Fund Management Institutions,
254 Entities Dealing In Capital Markets Products,
54 Corporate Finance Advisors,
144 Venture Capital Fund Management Entities and
296 Registered Fund Management Companies.
- Around 81% of Singapore’s corporate debt is denominated in USD, followed by SGD accounting for around 11% of the total corporate debt issuance in 2020.
Top Singapore MNCs in Corporate Finance Sector
Deloitte & Touche Corporate Finance Pte Ltd
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Pricewaterhousecoopers Corporate Finance Pte Ltd
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Goldman Sachs (Singapore) Pte.
Goldman Sachs (Singapore) Pte. is part of the Goldman Sachs Group, which is a global financial institution that deals with investment banking, investment management, securities and consumer banking. Goldman Sachs is headquartered in New York and has offices spread across the world, including two in Singapore. Goldman Sachs Singapore is a Capital Markets Services Licensee, and deals with products such as securities, collective investment schemes, exchange-traded derivatives contracts, over-the-counter derivatives contracts, and spot foreign exchange contracts for leveraged foreign exchange trading. It also advises on corporate finance and is an Exempt Financial Adviser.
Jefferies Singapore Limited
Jefferies Singapore Limited is part of the New York-based Jefferies Financial Group, with offices in the US, Europe, Asia and Australia. The company's services include investment banking, equities, fixed income, asset management and wealth management. Jefferies Singapore Limited has been granted a Capital Markets Services Licence by the Monetary Authority of Singapore, and undertakes the regulated activity of dealing in securities, collective investment schemes and exchange-traded derivatives contracts. The company provides advisory services on corporate finance as well as investment products, as an Exempt Financial Adviser.
Lazard Asia Limited
Lazard Asia Limited is the Singaporean branch of Lazard, which is a listed global firm with offices in over 25 countries. The company specialises in financial advisory - including mergers and acquisitions, restructuring, capital raising and capital structure - and asset management, where Lazard manages investment portfolios. Lazard has served corporations, institutions, partnerships, governments, individuals and sovereign entities, and managed assets of high-net-worth individuals, sovereign wealth funds, and pensions. Lazard Asia has played a key role in some of the most important restructuring and privatisation transactions in the region.
Ernst & Young Corporate Finance Pte Ltd
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Barclays Bank Plc
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Nomura Singapore Limited
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Royal Bank Of Canada
Royal Bank of Canada (RBC) Capital Markets is part of Royal Bank of Canada, which is a global financial services company headquartered in Toronto, with expertise in capital markets, banking, and finance. It deals with clients such as asset managers, private equity firms and governments across North America, Europe and the Asia-Pacific region. RBC Wealth Management in Singapore provides services such as private banking, asset management, trusts, and investment management. RBC in Singapore is an Exempt Financial Adviser and Exempt Capital Markets Services Entity, which provides custodial services, product financing, fund management, and advises on corporate finance and deals in capital markets products.
Rothschild & Co Singapore Limited
Rothschild & Co is a leading global financial services group with offices in over 40 countries across the US, Europe, the Middle East and Africa, and the Asia-Pacific region, including Singapore. The company comprises four complementary businesses: wealth management, global advisory, asset management and merchant banking. Rothschild & Co has had a presence in Singapore for almost 40 years, and it is part of the global advisory which is present in five countries across the region. The company provides advisory and execution services to clients such as families, entrepreneurs, governments, and private equity and mid-sized corporations, local investment houses and overseas investors.
Top Singapore Large Local Enterprises in Corporate Finance Sector
Oversea Chinese Banking Corporation Limited
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DBS Bank Ltd
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Phillip Capital Pte Ltd
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UOB Kay Hian Private Limited
UOB Kay Hian is a listed brokerage firm, which is headquartered in Singapore, with offices across Southeast Asia, Greater China, the UK and North America. Its products include equities, bonds, Contracts for Difference (CFDs), Daily Leverage Certificates (DLCs), Exchange Traded Funds (ETFs), futures and options, leveraged FX, robo advisory and unit trusts. The company offers services such as acquisition finance, corporate advisory and finance, investor education, margin trading, retail and institutional investor services, structured financing and wealth management. UOB Kay Hian’s financial services and solutions enable investors to trade across securities including stocks, bonds, futures, unit trusts, options, forex and CFDs.
Nexia TS Pte Ltd
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Foo Kon Tan Advisory Services Pte Ltd
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Top Singapore SMEs in Corporate Finance Sector
PrimePartners Corporate Finance Pte Ltd
PrimePartners Corporate Finance is a boutique corporate finance firm which is headquartered in Singapore. The company covers South-East Asia and Greater China, undertaking advisory and capital-raising projects. PrimePartners Corporate Finance is licensed by the Monetary Authority of Singapore and the Singapore Exchange. The firm’s services include corporate finance, mergers and acquisitions, capital solutions, continuing sponsorships and digital assets, offering customised solutions. Partner firms - including PrimePartners Asset Management, Aris PrimePartners for fund management activities, North Ridge Partners that caters to public technology companies in Australia and New Zealand, and Origgin to raise capital for startups - help expand its services and client base.
TC Capital Pte Ltd
TC Capital is a Pan-Asian investment bank with offices in Singapore, Hong Kong and Mauritius. Covering the regions of South-East Asia, Greater China and India, TC Capital provides quality investment banking to emerging, high-growth and mid-capitalisation companies. The firm specialises in services such as mergers and acquisitions, corporate finance, private capital transactions for medium-capitalisation, family-owned and growth companies in Asia, private equity funds and IPO advisory. TC Capital has catered to sectors such as Consumer and Retail, Industrial, Energy and Environment, Real Estate, Financial Institutions, Technology, and Media and Telecommunications.
China Knowledge Pte Ltd
China Knowledge is a company that provides business solutions and products that relate to China, with offices in Singapore, Malaysia, Thailand and China. The Group's services include professional and financial publishing, market research, online portal, and consulting to foreign businesses that seek opportunities in China. China Knowledge’s portfolio of products includes Newswire, Bonds, Mutual Funds, Trusts and China Financial System. Among the company’s services are investor relations, business set-up, investment, corporate and financial advisory, market research, media planning, and fundraising. China Knowledge caters to clients such as governments, ministries, and private and state-owned enterprises that seek to market globally.
SAC Capital Private Limited
SAC Capital is a specialist in corporate finance, licensed by the Monetary Authority of Singapore to conduct Dealing in Capital Markets Products and Advising on Corporate Finance, and it is approved by the Singapore Exchange as a Catalist Full Sponsor. Specialising in IPOs and corporate advisory, SAC Capital's services include Catalist Sponsorship, Capital Markets, Financial Advisory, Mainboard and Catalist Listing, Mergers and Acquisitions, and Research. Already a trusted adviser to its clients and partners, SAC Capital entered into a business and capital alliance with Resona Bank in early 2021, focusing on growing into a premium investment banking firm.
Avista Advisory Partners Pte Ltd
Avista Advisory Partners is a boutique investment banking advisory firm which is headquartered in Singapore, with offices in India and the Philippines, and services extending to Vietnam and Indonesia. The firm specialises in investment banking advisory and asset management, executing complex mergers and acquisitions, restructuring and private finance transactions. Its financial sponsors cover the spectrum of private equity, sovereign wealth funds, family offices, banks, insurance companies, special situation funds and more, enabling the firm to provide innovative strategies and tailored solutions to its clients. It has worked with clients such as Videocon, Suzlon Energy, Sterling Biotech, GTL Infrastructure and Accenture.
Ivory Capital Asia Pte Ltd
Ivory Capital Asia is an independent boutique investment firm with offices in Singapore and Hong Kong, which caters to Asian markets, providing solutions and advisory services such as Strategic Advisory and Financing Advisory. The company specialises in mergers, acquisitions, joint ventures, management buyouts, strategic partnerships, corporate restructuring, strategic stake sales, trade sales, leveraged buyouts, equity and mezzanine capital and debt financing. The firm serves clients such as private investors, public and private companies and business owners in Asia, Europe, and the US. Ivory Capital Asia was conferred the Best Boutique Investment Bank Award in 2016 by Global Finance.
Pickering Pacific Private Limited
Pickering Pacific, a mergers and acquisitions specialist in East Asia, is headquartered in Singapore. The firm advises on corporate finance as licensed by the Monetary Authority of Singapore, and covers sectors including logistics, pharmaceutical, food, communication, services, minerals and mining, healthcare, technology, and e-commerce. Pickering Pacific covers South-East Asia, with partners in Europe, North America, the Middle East and Africa, and Australia, New Zealand and Papua New Guinea, expanding its reach. The company's services include finding targets and completing acquisitions, and sourcing buyers and completing sales. It has worked with clients such as Getz Healthcare, IMERYS, and Norma Group.
Provenance Capital Pte Ltd
Provenance Capital is a boutique corporate finance firm which is based in Singapore. A privately owned company licensed by the Monetary Authority of Singapore, the firm provides corporate finance advisory services to its clients - companies that are listed and aspiring to list on the Main Board and Catalist Board of the Singapore Exchange. Its range of finance advisory services includes IPOs, mergers and acquisitions, secondary capital raising, reverse takeover, privatisations, de-listings, general takeover offers, interested person transactions, whitewash waivers, continuing sponsorship services to Catalist-listed companies, and special deals. Provenance Capital’s clients include P5 Capital Holdings, Fabchem China, and Cosco Shipping International.
Redpeak Advisers Pte Ltd
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Raffles Financial Private Limited
Raffles Financial is a Singapore-based listed financial services company with representatives in the RCEP Region. Its suite of financial solutions includes restructuring and corporate finance; family office and trust; fund investment advisory; IPO and international fund raising to clients seeking public listing on stock exchanges in Australia, Canada, the US, Europe, Hong Kong and Singapore; representative examination; assessment and preparation; and bonds, options, shares, and structured notes. The company has served sectors including hospitality, food and beverage, and pharmaceuticals. Raffles Financials is the first Singaporean financial services company to be listed on the Canadian Securities Exchange.
Top Singapore Fastest-Growing Companies in Corporate Finance Sector
Redpeak Advisers Pte Ltd
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Braemar Naves Pte Ltd
Braemar Naves is a listed expert in shipping investment, chartering and risk management, with offices in Singapore, North and South America, Europe, China, India, the UAE, and Australia. Braemar Naves combines commercial, financial, technical and operational expertise to provide market analytics and innovative strategies, loan portfolio pricing and restructuring with services such as shipping investment advisory, chartering and shipping risk advisory. Its solutions include shipping research tools, a trading tool for up-to-date pricing data, market intelligence for the offshore energy sector, and a digital platform that allows clients to offset their emissions and reduce their carbon footprint in a cost-effective manner.
Jefferies Singapore Limited
Jefferies Singapore Limited is part of the New York-based Jefferies Financial Group, with offices in the US, Europe, Asia and Australia. The company's services include investment banking, equities, fixed income, asset management and wealth management. Jefferies Singapore Limited has been granted a Capital Markets Services Licence by the Monetary Authority of Singapore, and undertakes the regulated activity of dealing in securities, collective investment schemes and exchange-traded derivatives contracts. The company provides advisory services on corporate finance as well as investment products, as an Exempt Financial Adviser.
Nuevo Asia Capital Pte Ltd
Nuevo Asia Capital is a financial services company which is headquartered in Singapore, catering to Asia, the Middle East and Africa. The company offers services such as trade finance, corporate finance, mergers and acquisitions and advisory, including capital structure optimisation, regional expertise and divestitures. Trade finance solutions include letters of credit, pre-shipment credit, transit financing, supply chain financing, open credit, and structured trade facilities. Nuevo Asia Capital’s corporate finance solutions include structured finance and mezzanine debt, asset-backed financing, project finance, refinancing solutions and equity solutions. It has serviced sectors such as consumer goods, industrial, real estate, hospitality, infrastructure, and energy.
Lazard Asia Limited
Lazard Asia Limited is the Singaporean branch of Lazard, which is a listed global firm with offices in over 25 countries. The company specialises in financial advisory - including mergers and acquisitions, restructuring, capital raising and capital structure - and asset management, where Lazard manages investment portfolios. Lazard has served corporations, institutions, partnerships, governments, individuals and sovereign entities, and managed assets of high-net-worth individuals, sovereign wealth funds, and pensions. Lazard Asia has played a key role in some of the most important restructuring and privatisation transactions in the region.
Seafin Pte Ltd
Seafin Pte. Ltd. is part of the Eurofin Group, a company that focuses on investment and corporate banking, specialising in the maritime industry, with offices in London, Athens, Lausanne and Singapore. The Eurofin Group provides services such as maritime financing, investment banking, and corporate finance, dealing with capital markets transactions, public and private shipping companies, and restructuring problem loans. The company also services industries such as energy, automotive, real estate, telecommunications, financial institutions, and hotel and leisure. The Seafin office in Singapore is a corporate finance advisory service and offers ship brokering and ship finance advisory services.
Houlihan Lokey (Singapore) Private Limited
Houlihan Lokey is a global investment bank which is headquartered in Los Angeles, with offices across America, Europe, the Middle East, and Asia-Pacific, including Singapore. The company provides expertise on mergers and acquisitions, capital markets, valuation and financial restructuring, covering sectors such as energy, healthcare, industrial, real estate, technology, consumer, and food and retail. Working seamlessly with its global network, Houlihan Lokey in Singapore provides strategic alternatives to enhance shareholder value, delivering world-class financial and strategic advice to clients in and around Singapore. Houlihan Lokey Singapore has worked with clients such as Malaysia Airlines, Pearl Engineered Solutions, China Fishery and FDK Indonesia.
PrimePartners Corporate Finance Pte Ltd
PrimePartners Corporate Finance is a boutique corporate finance firm which is headquartered in Singapore. The company covers South-East Asia and Greater China, undertaking advisory and capital-raising projects. PrimePartners Corporate Finance is licensed by the Monetary Authority of Singapore and the Singapore Exchange. The firm’s services include corporate finance, mergers and acquisitions, capital solutions, continuing sponsorships and digital assets, offering customised solutions. Partner firms - including PrimePartners Asset Management, Aris PrimePartners for fund management activities, North Ridge Partners that caters to public technology companies in Australia and New Zealand, and Origgin to raise capital for startups - help expand its services and client base.
Wealth Management Alliance Pte Ltd
Wealth Management Alliance is licensed by the Monetary Authority of Singapore, and specialises in managing financial assets and family wealth. With its Capital Markets Services Licence, the company manages assets with over 20 private banks and custodians across eight jurisdictions. Wealth Management Alliance serves clients around Australia, China, Belgium, France, India, Indonesia, Malaysia, Korea, the Netherlands, the UK, Vietnam and Singapore, managing their commodities, property, private equity, tech startups, food manufacturing, luxury retail and more. Through its relationship with fund managers, the company offers its clients opportunities that are otherwise unavailable to private clients.
Zico Capital Pte Ltd
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