This is an arrangement between EXIM Bank of Malaysia and International Trade Finance Corporation of Jeddah, Saudi Arabia to ensure “secured payment transaction” via Irrevocable Commitment to Reimburse (ICR), benefitting exporters of goods from Malaysia to OIC member countries.
Purpose
To facilitate Malaysian exports by extending import financing facilities to buyers from OIC member countries to import goods from Malaysia.
Benefit To Customer
Foreign Customers
Competitive profit rate vis-à-vis host country’s high cost of borrowing;
An import financing option as opposed to those offered locally or by other exporting countries.
Malaysian Exporters / Contractors
Enable exporters / contractors to expand abroad and into non-traditional market;
Eligibility
Importer/Buyer from OIC Member Countries with minimum three (3) years in business and Exporter must be Malaysian incorporated companies.
Margin of Financing
Up to a maximum of 100% of the export invoice value
Tenor
Up to a maximum of 180 days.
Minimum Transaction Value
USD200,000
Currency of Transaction
USD or SDR
Repayment
Against sales proceeds
Security
Any or not limited to the following:-
Bank Guarantee
Government Guarantee
Insurance Guarantee by Export Credit Agency (ECA)
Corporate Guarantee
Directors’ Guarantee
Others
Note: The terms and conditions stated above are subject to review from time to time.
