EXIM BANK GETS RM55M AFB LOAN FOR HEAD OFFICE

Exim Bank of Malaysia Bhd has secured financing worth RM55 million from locally incorporated Middle Eastern bank, Asian Finance Bank (AFB), to purchase a new head office in Kuala Lumpur.

Wholly-owned by the Finance Ministry, Exim Bank yesterday signed with AFB a Murabahah-term financing of RM55 million to part-finance the RM63 million purchase of Bangunan Darul Takaful, located at Jalan Sultan Ismail. The financing is for a period of seven years.

Exim Bank managing director and chief executive officer Mohd Fauzi Rahmat said internal funds will be used to pay the remaining RM8 million for the building.

He said Exim Bank expects to move in by early 2011, depending on availability of space.

"Bank Islam intends to move to a new building either late 2010 or early 2011. Our needs, two years from now, range between 70,000 and 85,000 sq ft of space. We can (still) wait because our current space is sufficient for the next two years," he said. The 18-storey Bangunan Darul Takaful has 99,022 sq ft of space.

Mohd Fauzi said AFB was chosen not only for its competitive pricing, but also because there is potential for joint collaboration in the future, particularly in overseas markets.

"AFB, with the strength of its highly reputable shareholder consortium, offers Syariah-compliant banking instruments that are internationally recognised and accepted," he added.

AFB is backed by a consortium of Middle Eastern shareholders comprised of Qatar Islamic Bank (70 per cent), RUSD Investment Bank of Saudi Arabia (20 per cent) and Financial Assets Bahrain WLL (10 per cent).

Meanwhile, AFB chief executive officer Datuk Mohamed Azahari Kamil said despite the global financial downturn, the bank's continued financing activities underscore its confidence in the Malaysian government, its policies and leadership.

"The crisis is almost like a provocative thing for us to wake up. It is a good provocation. It has given us enthusiasm. We are excited and we like the challenge," he said.

Mohamed Azahri said AFB is looking at loan growth of 100 to 200 per cent this year.