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SPRING Singapore, IE Singapore and DBS Bank Limited launch new $300 million loan scheme for SMEs

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The SME ACCESS Loan Scheme to be managed by SME CreditAssist (Singapore) Ltd

SINGAPORE, APRIL 8, 2005 - A new government-backed financing scheme to help small and medium-sized enterprises (SMEs) facing difficulties in securing financing was launched today. The launch ceremony, attended by some 300 SMEs, was held at the Swissotel The Stamford Hotel.

Mr Cedric Foo, Minister of State for Defence and National Development and Chairman of SPRING Singapore, who was the guest-of-honour at the launch said: "The SME ACCESS Loan programme will benefit SMEs, in particular, those with little collateral, or limited track record, and those seeking financing for ternationalisation purposes. We hope to generate loans amounting to $300m in the next six months through this programme."

The SME ACCESS Loan is a new financing programme initiated by SPRING Singapore and supported by IE Singapore. DBS Bank Limited has been appointed as the Programme Manager to manage this new initiative. The SME ACCESS Loan will be marketed by SME CreditAssist (Singapore) Ltd, a special purpose company set up to provide financing to SMEs through a bridging warehousing facility granted by DBS. Once the optimal mix and size of the SME loan portfolio are achieved, SME CreditAssist (Singapore) Ltd, will raise funds from the debt capital market to replace the funding from the warehousing facility. (Please refer to Annex A for the programme works.)

Mr Edwin Khoo, DBS Managing Director and Head of Enterprise Banking Group, said: "As a market leader in asset securitisation, DBS has tapped in-house expertise to structure Singapore's first innovative SME loan securitisation scheme. We believe it offers a unique funding proposition that gives the under-served SME segment easier access to the capital market, which remains closed to most SMEs."

He added "DBS aims to be a leading bank in SME financing and to this end, we are committed to exploring new ways of helping our enterprising customers secure the funding they need for their business growth and expansion."

A marketing campaign to raise awareness of the new loan scheme commences today. It includes newspaper and radio advertisements, followed by a direct mail marketing exercise to targeted SMEs. (Please refer to Annex B for details on the various loan types and qualifying terms and conditions.)

About SPRING

SPRING (Standards, Productivity and Innovation Board) Singapore's mission is to enhance the competitiveness of enterprises for a vibrant Singapore economy. We work to nurture a pro-business environment that encourages enterprise formation and growth; facilitate the growth of industries; enhance productivity and innovation and capabilities of enterprises; and help increase access to markets and business opportunities.

For more information, please visit www.spring.gov.sg

About IE Singapore

International Enterprise Singapore (IE Singapore) is the lead agency spearheading Singapore's efforts to develop its external economic wing.

Our mission is to help Singapore-based companies grow and internationalise successfully. We offer a wide range of services in Singapore and 36 locations worldwide by using a 3C framework of assistance - Competency, Connections and Capital. We provide market information, assist enterprises to develop their business capabilities and find overseas partners. At the same time, IE Singapore works to position Singapore as a base for foreign businesses to expand into the region in partnership with Singapore-based companies.

For more information, please visit www.iesingapore.com

About DBS

Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has dominant positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin and Dongguan. The Bank's credit ratings are among the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com