Arrangements for qualifying project debt securities
4.—(1) The arrangements referred to in paragraph (a) of the definition of “qualifying project debt securities” in section 13(16) of the Act are as follows:
(a)
where the qualifying project debt securities are issued during the period from 1 November 2006 to 31 December 2013 and are not issued under a programme —
(i)
the lead manager for the issue of the qualifying project debt securities is a financial sector incentive (bond market) company or a financial sector incentive (project finance) company; or
(ii)
the issue of the qualifying project debt securities is arranged by a financial institution in Singapore, of which the staff who are based in Singapore have a leading and substantial role in originating and structuring the issue and its distribution;
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(aa)
where the qualifying project debt securities are issued during the period from 1 January 2014 to 31 March 2017 and are not issued under a programme, any one of the following is satisfied:
(i)
the lead manager is any, or if there is more than one lead manager, more than half of the lead managers are any or any combination, of the following:
(A)
a financial sector incentive (bond market) company;
(B)
a financial sector incentive (capital market) company;
(C)
a financial sector incentive (standard tier) company;
(ii)
if the issuer is a Singapore-based issuer —
(A)
more than half of the amount of gross revenue from arranging the issue is attributable to any or any combination of the following:
(AA)
a financial sector incentive (bond market) company;
(AB)
a financial sector incentive (capital market) company;
(AC)
a financial sector incentive (standard tier) company; and
(B)
more than half of the staff arranging the issue, of the company or cumulatively of the companies mentioned in sub‑paragraph (A), are based in Singapore;
(iii)
if the issuer is not a Singapore-based issuer, more than half of the debt securities issued under the issue are distributed by any or any combination of the following:
(A)
a financial sector incentive (bond market) company;
(B)
a financial sector incentive (capital market) company;
(C)
a financial sector incentive (standard tier) company;
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(b)
where the qualifying project debt securities are issued during the period from 1 November 2006 to 31 March 2017 under a programme, the programme as a whole is arranged by a financial sector incentive (bond market) company or a financial sector incentive (project finance) company;
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(ba)
where the qualifying project debt securities are issued during the period from 1 January 2014 to 31 March 2017 under a programme, the programme as a whole is arranged by a financial sector incentive (bond market) company or a financial sector incentive (project finance) company, the arrangement of which is not completed on or before 31 December 2013 by the financial sector incentive (bond market) company or financial sector incentive (project finance) company, and the arrangement is completed on or after 1 January 2014 by a financial sector incentive (capital market) company or a financial sector incentive (standard tier) company;
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(bb)
where the qualifying project debt securities are issued during the period from 1 January 2014 to 31 March 2017 under a programme, the programme as a whole is arranged on or after 1 January 2014 by a financial sector incentive (capital market) company or a financial sector incentive (standard tier) company;
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(c)
where the qualifying project debt securities are issued during the period from 1 November 2006 to 31 March 2017 by a new issuer who joins an existing programme which does not satisfy the requirement in sub-paragraph (b) —
(i)
the participation of the new issuer in the programme is arranged by a financial sector incentive (bond market) company or a financial sector incentive (project finance) company; and
(ii)
the existing programme as a whole was arranged —
(A)
on or before 31st December 2003, by an approved bond intermediary or an affiliate of an approved bond intermediary; or
(B)
on or after 1st January 2004, by an affiliate of a financial sector incentive (bond market) company or financial sector incentive (project finance) company;
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(ca)
where the qualifying project debt securities are issued during the period from 1 January 2014 to 31 March 2017 by a new issuer who joins an existing programme which does not satisfy the requirement in sub‑paragraph (b), (ba) or (bb) —
(i)
the participation of the new issuer in the programme is arranged on or after 1 January 2014 by a financial sector incentive (capital market) company or a financial sector incentive (standard tier) company; and
(ii)
the existing programme as a whole —
(A)
is arranged by an affiliate of any financial sector incentive (bond market) company or financial sector incentive (project finance) company; or
(B)
is arranged on or after 1 January 2014 by an affiliate of any financial sector incentive (capital market) company or financial sector incentive (standard tier) company;
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(d)
where the qualifying project debt securities are issued during the period from 1 November 2006 to 31 December 2013 under a tranche of a programme which does not satisfy the requirement in sub-paragraph (b) or (c), the dealers for more than half of the qualifying project debt securities issued under that tranche are —
(i)
financial institutions in Singapore, of which the staff who are based in Singapore have a leading and substantial role in the distribution of the qualifying project debt securities;
(ii)
financial sector incentive (bond market) companies; or
where the qualifying project debt securities are issued during the period from 1 January 2014 to 31 March 2017 under a tranche of a programme which does not satisfy the requirements in sub‑paragraph (b), (ba), (bb), (c) or (ca), more than half of the qualifying project debt securities issued under that tranche are distributed by any or any combination of the following:
(i)
a financial sector incentive (bond market) company;
(ii)
a financial sector incentive (project finance) company;
(iii)
a financial sector incentive (capital market) company;
(iv)
a financial sector incentive (standard tier) company.
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(2) For the purposes of paragraph (1)(a)(ii) and (d)(i), the staff of a financial institution in Singapore (other than an approved bond intermediary, a financial sector incentive (bond market) company or a financial sector incentive (project finance) company) who are based in Singapore shall be deemed not to have a leading and substantial role in originating and structuring an issue of qualifying project debt securities, or in its distribution, if the staff of that financial institution, its affiliate or otherwise, who are based outside Singapore have a major role in the originating, structuring or distribution of the issue.