OCBC to launch venture debt

LATER this year, OCBC will launch venture debt, a form of debt financing structured for young companies which have earlier raised capital from venture capitalists or angel investors.

Of these young companies, fast-growth companies are likely to be the biggest adopters of venture debt, Tan Chor Sen, OCBC's head of international, global commercial banking, tells The Business Times.

"Because they are growing so fast, the cash generation is not enough for them. Most of the time, they are cash-deficient," says Mr Tan. Capital to fund these fast-growth companies is currently also limited, he added.