CONTRACT FINANCING-i

This facility provides financial support to Malaysian Contractors undertaking overseas and local contract such as infrastructure, manufacturing and other developmental projects.

 
Purpose
Overseas
Contract Financing Overseas-i (CFO-i) facility is available to Malaysian-owned and controlled companies to undertake overseas project/contract from foreign or Malaysian Contract Awarder, such as construction of plant, infrastructure, manufacturing and other developmental projects.
 
Domestic
Contract Financing Domestic-i (CFD-i) facility is available to Malaysian-owned and controlled companies to undertake local project/contract from foreign or Malaysian Contract Awarder, such as construction of plant, infrastructure, manufacturing and other developmental projects.
 
The eligibility criteria for CFD-i are subject to the following conditions:
  1. The Contract Awarder must have at least 50% of the product/services be exported: and
  2. The element of import for contractor must be at least 50% of the total financing.

The financing shall be eligible for both strategic and non-strategic industry.

Shariah Contracts / Concepts
The Shariah contracts / concepts applicable to Overseas/Contract Financing-i are:
  1. Ijarah
  2. Istisna’
  3. Murabahah
  4. Tawarruq (Commodity Murabahah)

* Whichever is applicable.

Eligibility
Malaysian supplier/contractor.
Margin of Financing
Up to maximum of 85% of the project cost of the contract value.
Tenure
Up to a maximum of 10 years inclusive of grace period not exceeding 2 years.
Profit Rate
Cost of fund-i plus spread
Currency
Ringgit Malaysia, United States Dollars, Euro and other acceptable currencies.
Repayment
Against contract proceeds and/or progressive payment
Disbursement
  1. Direct to the suppliers/contractors
  2. Overhead expenses direct to customer
Security
Any and not limited to the following:
  1. Cash collateral
  2. Corporate Guarantee
  3. Shareholders and/or directors guarantee
  4. Sinking Fund
  5. Cash margin against bond issuances
  6. Assignment of contract proceeds
  7. others
Fees and Charges
Processing Fee of 1.0%* of the financing amount.
(*) subject to Terms and Conditions. Not applicable to SMEs.