Mezzanine Scheme

An equity-based financing solution designed for high-potential franchise businesses, structured to strengthen growth and enable market expansion through flexible and strategic investments.


Objective

To support franchise businesses (both local and international) with proven business models and strong market potential through strategic financing assistance.


Company Criteria

  • Strong growth trends and market potential;
  • Profit After Tax (PAT) for the last two (2) audited financial years plus current year PAT forecast must total at least RM1 million;
  • Minimum shareholders’ funds of RM2 million.

Investment Structure

Investment Method Investment Size Investment Tenure
Subscription of Ordinary Shares and/or Redeemable Convertible Preference Shares (RCPS)
  • Up to RM30 million for a combination of Ordinary Shares and RCPS
  • Up to RM5 million for RCPS-only investment
Maximum of 5 years

Ordinary Shares: Up to 30% equity in the target company

Expected Returns: Minimum 8% per annum via Put or Call Option

RCPS: Fixed dividend rate of 6% per annum (not subject to maximum gearing ratio of 2x)

Fees / Costs

  • Processing Fee: 1% – 1.5%;
  • Financial Due Diligence: RM30,000 – RM100,000 (Estimated);
  • Legal Due Diligence & Documentation: RM25,000 – RM50,000 (Estimated).

Proposal Format

Download this proposal to learn more about the programs offered.

Download PDF