In this article
What a debenture actually is
A debenture is a one-off capital payment made on or before enrolment, in addition to tuition. The school uses the payment to fund building work, equipment, scholarships or reserves. Depending on the contract, the debenture is either fully refundable when the family leaves, partially refundable on a tapering schedule, or non-refundable in exchange for a tuition discount or priority admission. The amounts vary widely. A junior-school debenture at a mid-tier school in Singapore might be SGD 5,000. A senior-school debenture at a heritage British school in Hong Kong can exceed HKD 1.5 million, the equivalent of USD 190,000.
The structural logic is simple. International schools rarely have access to public funding, and most cannot borrow at the rates a state school's authority can borrow. The capital required to build and maintain a campus has to come from somewhere. Tuition pays the running costs. Debentures pay the capital. The legal form varies. In Hong Kong, individual debentures are sometimes tradable on a secondary market. In Singapore, they are usually structured as donations or as advance fee deposits, and the secondary market is thinner.
The four types of debenture in 2026
Across the global market, debentures fall into four practical buckets. Capital levy debentures are non-refundable contributions paid once per child on entry, often called a "capital levy" or "building fee". The most common amounts are USD 5,000 to USD 25,000 per child. Refundable individual debentures are larger payments held by the school and returned in full or in part when the family departs. The most common amounts are USD 25,000 to USD 100,000 per family. Corporate debentures are large refundable payments held in the employer's name, transferable between employees as they rotate. The most common amounts are USD 50,000 to USD 200,000. Nomination rights debentures grant the holder priority admission rights for a fixed period in exchange for an investment, with capital generally refundable on a tapering schedule.
Find debenture costs by school
Our fee comparison tool shows the all-in cost of any school in our database, including debenture obligations where they apply. The tool also separates refundable from non-refundable capital so you can see the true cash impact for your family.
Hong Kong: where the system runs
Hong Kong is the global capital of school debentures. Almost every senior international school in the city operates a debenture system in some form. The English Schools Foundation (ESF), which runs 22 schools and is the largest single network in Hong Kong, charges a non-refundable "Capital Levy" that runs from HKD 38,000 to HKD 76,000 per child depending on the year of entry. ESF families pay annually, not in a lump sum.
Beyond ESF, the picture varies dramatically by school. Hong Kong International School (HKIS) operates a corporate debenture system priced at over HKD 500,000 per place. The German Swiss International School operates a similar system. Harrow International School Hong Kong requires a one-off "founder's contribution" of HKD 110,000 per family, non-refundable. The newer schools (Stamford American, Mount Kelly, Malvern College Hong Kong) generally do not run debentures, preferring straightforward higher tuition.
For incoming families, the headline question is whether your employer has a transferable corporate debenture for the school you want, because if it does, your out-of-pocket capital cost is effectively zero. If it does not, the gap between debenture and non-debenture schools is meaningful. Read our Hong Kong city guide for the wider context and our best schools in Hong Kong piece for the school-level view.
Singapore: smaller market, same logic
Singapore's debenture market is smaller than Hong Kong's but uses the same underlying logic. The United World College of South East Asia (UWCSEA) charges a Foundation Fee (annual, non-refundable) of around SGD 4,800 to SGD 6,500. Tanglin Trust School charges a Personal Building Fund of SGD 4,400 per year. Singapore American School (SAS) operates a Facilities Fee of SGD 6,000 per year. None of these are debentures in the classic refundable sense; they are non-refundable capital levies.
The classic refundable debenture exists in Singapore but is rarer. A few schools (notably some of the smaller curriculum-specific options) accept a refundable capital deposit in lieu of priority admission, but the secondary market for these debentures is small and the financial logic less compelling than in Hong Kong. For most Singapore families, the relevant calculation is whether the annual capital levy is included in the employer's school fee allowance.
Corporate versus individual debentures
The single most important distinction in the debenture system is between corporate and individual debentures. A corporate debenture is purchased and held by the employer. When the employee rotates out, the debenture stays with the employer and is reissued to the next employee's family. The capital is essentially permanent for the company but transparent for the employee.
An individual debenture is held by the family. When the family departs, the debenture is either refunded or sold on the secondary market. The refund timing varies. Some schools refund within 90 days of the child leaving. Some refund after a queue position is reached (which can mean waiting two or three years). The secondary market, where it exists, prices debentures at slight discounts to the face value, with the discount widening when the school is unfashionable and narrowing when it is oversubscribed.
For a senior expat assignment where the employer routinely covers school costs, the corporate debenture is almost always the better route. For a family that has moved internationally on its own account (entrepreneurs, returnees, self-employed professionals), the individual debenture is the only option and the secondary market dynamics become material.
Should you buy?
For most expat families, the right answer is that the employer should buy the debenture, not you. If you are negotiating a contract for a Hong Kong or Singapore assignment and the employer does not currently hold a debenture at your preferred school, ask for one as a condition of acceptance. This is normal practice in the Hong Kong corporate market and is increasingly normal in Singapore. The capital cost to the company is significant, but it is amortised across multiple postings.
For families paying themselves, the calculation depends on three variables: how long you expect to be in the city, the spread between debenture and non-debenture school tuition, and the time value of money on the capital tied up. A back-of-envelope rule for a five-year posting in Hong Kong: a HKD 500,000 corporate debenture at a school with HKD 30,000 of tuition advantage versus the non-debenture alternative breaks even at around four years. Anything longer and the debenture wins. Anything shorter and the higher-tuition alternative wins.
Three tactics that work
First, ask the bursar what the secondary market is doing. Heritage schools sometimes have queues for debenture transfers, which lowers the family's exit risk. Second, look at the school's audited accounts (publicly available for most international schools in Hong Kong) to see the share of revenue that comes from capital fees versus tuition. A school with a healthy mix is more resilient than one that depends on new debenture sales. Third, treat the debenture refund mechanism as a contract clause and have it reviewed by a lawyer if the amount is material. The default refund timing is often longer than parents expect.