TradeTravelJournal.com | The Goldbell Evolution Network (GEN) private investment platform will facilitate loans to Singapore companies while offering investors a new investment opportunity in playing a role in the growth stories of local companies.
Goldbell announces the launch of their private debt investment platform, GEN. GEN (pronounced “ghern”), an acronym for Goldbell Evolution Network, is derived from the Chinese word “roots”, depicting stability like a tree with deep roots. The Platform allows investors an alternative investment opportunity into creditworthy local companies of their choice by tapping on Goldbell’s financial capabilities, domain knowledge and an extensive network of local businesses. To demonstrate confidence in its in-house credit assessment processes, Goldbell Financial Services will co-invest with investors, investing around 30% of funding capital sought by a company seeking funding through the Platform.
The Platform is operated by Goldbell Evolution Network (GEN) Pte. Ltd., a subsidiary of Goldbell Financial Services. Companies seeking to raise funds through the GEN platform are to submit their interest through app.gen.sg/borrower. Annex A lists the details of how GEN works.
For a start, GEN will focus on loans that are secured by assets such as property and vehicles. Investment deals on GEN will indicate whether the loans are secured and what the underlying collateral is so that investors have clearer visibility on the risks involved. GEN aims to provide investors diversification in their investment portfolios and seeks to offer yields in the range of 5 – 12% returns.
Goldbell started as a distributor of commercial vehicles in Singapore in the 1980s and developed into Singapore’s largest industrial vehicle distribution and leasing company, with a fleet size of up to 8,500 leasing vehicles in Singapore. Goldbell Financial Services was set up in 2015 to cater to the growing needs of their clientele and GEN was developed to stay abreast of financial developments in the market place.
“Businesses today need to harness technology and innovations and be inspiring contributors in an ever-changing market place. Our vision for GEN is to couple technology with our experience and domain knowledge in order to create unparalleled possibilities in financing – enabling an environment for the fulfilment of both investment and funding needs,” says Alex Chua, CEO of Goldbell Financial Services.
“Goldbell wants to build a truly cohesive community of local business owners and investors who can create more opportunities for the future generations of Singapore and create a self-sufficient business-friendly ecosystem,” says Alex. “Investors who co-invest with us in GEN will be able to truly make a difference in the development of local brands, local stories and local histories.”
GEN obtained its capital markets services licence from the Monetary Authority of Singapore in May 2019. Law firm Baker McKenzie Wong & Leow assisted with the licence application and providing regulatory and compliance advice around licensing and the setting up of the Platform.
- Companies seeking to raise funds through the GEN platform are to submit their interest through app.gen.sg/borrower
- These companies will first be assessed by GBFS, using their effective credit risk assessment protocols.
- The loan amount, tenor, collateral requirements will be reviewed and determined by GBFS before such investment opportunity is offered on the GEN Platform.
- Investors will be able to view and request notifications on investment opportunities to finance loans to these companies via the GEN Platform. If interested, the investors can offer to participate in these opportunities. Investors can participate in such amounts as they wish, subject to prescribed minimum amounts.
- For successful bids to participate, the invested amount will be deducted from the investor’s GEN account. The repayment process is simple and automated. Investors will receive the repayment amounts in their GEN account.
- GEN will assist with tracking repayments and handling defaults or enforcement based on its established policies and processes.
- To assure investors of their confidence in these companies, Goldbell Financial Services will co-invest around 30% of the funding amount on the Platform and thus co-participate in the risk undertaken by GEN investors.
Backed by Goldbell’s experience in business management of close to 40 years; GEN integrates technology with Goldbell Financial Services’ credit assessment protocols to give investors unprecedented confidence in investing in local companies.