Buyer Financing-i is an Islamic financial scheme extended to foreign buyers/importers to buy Malaysian goods and services. These shall include those goods that are produced in Malaysia and services rendered in Malaysia or overseas. 5
The financing shall include but not limited to:
Manufactured industrial goods such as heavy machinery, industrial machinery, port equipments,
vessels, vehicles;
Development, upgrading or expansion of infrastructure facilities;
Financing of private projects e.g. construction of plant and buildings and
Professional services e.g. surveyors, architecture, consultations, ship repairing, aircraft
maintenance etc.
Benefit To Customer
Foreign Customers
Competitive profit rate vis-à-vis host country’s high cost of borrowing;
Enable customers to obtain medium and long term financing and
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;
Enable exporters / contractors to be competitive when bidding or negotiating for jobs.
Eligibility
The supplier/contractor must be a Malaysian owned and controlled company.
Margin of Financing
Up to a maximum of 85% of the Project cost or the Contract Value.
Tenor
Up to a maximum of 10 years inclusive of grace period not exceeding 2 years.
Profit Rate
Cost of fund plus spread. The spread shall be based on the risk rating of the company and other non- quantitative considerations.
Currency of Transaction
US Dollar or other applicable currencies.
Security
A combination of but not limited to the following:
Corporate Guarantee;
Shareholders and/or Directors guarantee;
Landed property;
Charge on fixed or floating assets of customer and
Assignment of Takaful/insurance policies, agreements, contract proceeds, rights and benefits.
Note: The terms and conditions stated above are subject to review from time to time.
