Lombard loans in Singapore.
Private credit against Singapore-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Singapore-listed shares is credit secured by a pledge of equity listed on the SGX. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the SGX (SGX).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in SGD or cross-currency.
- Structured under the MAS regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Singapore venue: Singapore Exchange (SGX). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Singapore are regulated by Monetary Authority of Singapore (MAS). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in SGD or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Singapore Exchange (SGX) |
|---|---|
| Regulator | Monetary Authority of Singapore (MAS) |
| Currency | SGD (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | Straits Times Index (STI) |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
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Disclosure and regulation
Singapore-listed shares fall under the Monetary Authority of Singapore, whose Securities and Futures Act (Section 137) requires a substantial shareholder to notify at 5% and on each 1% change thereafter — a fine-grained register by regional standards. For a private client pledging a concentrated holding, the point is continuity: the Lombard loan is arranged so that beneficial ownership, and therefore the notification position, is left undisturbed, and so that any enforcement is weighed against the same 1% steps. Singapore’s extensive tax-treaty network and the prevalence of REIT and business-trust lines also shape how distributions are handled inside the facility.
An illustrative example
Consider a private holding of SGD 50 million in a large-capitalisation, index-weight line on the SGX Mainboard. At an illustrative loan-to-value of 55% — within the disclosed 20–65% range, and consistent with a deep, liquid position — the facility releases roughly SGD 27 million in cash while the shares remain pledged and owned. Funding can be drawn in SGD or, where the family’s balance sheet sits elsewhere, on a cross-currency basis. The holder keeps dividends and the upside; the position is recovered in full on repayment.
Illustrative only — not an offer, a quotation, or a commitment to lend.