Contract Financing is a financing package using the existing financing facilities which are already available in the Bank.
It offers financing to customers who are Main Contractors or Nominated Sub-Contractors having secured contract(s) or future contract(s) from approved awarding parties mainly Government Ministries, Departments or Agencies.
Purpose
- Working Capital
- Bank Guarantee
Eligibility
- Applicant must be the Main Contractor or Nominated Sub-Contractor.
- Applicant must be registered with either of the following :
- Ministry of Finance (MOF)
- Contractor Service Centre (PKK)
- Construction Industry Development Board (CIDB)
- Other relevant licensing or registration bodies
Financing Concept
- Revolving Credit-i
- Cash Line-i
- Kafalah Bank Guarantee (BG)
Financing Limit
- Up to Single Customer Limit
Profit Rate
-
From BFR + 0.0% p.a to BFR + 2.5% p.a
-
Bank Guarantee Fee: 0.125% p.m
Margin of Financing
- Revolving Credit: Up to 100% of contract cost
- Kafalah Bank Guarantee (KBG): As per requirement by contract awarder
Financing Tenure
- As per contract requirements
Collateral
- Minimum 30% cash collateral
- Assignment of contract proceeds
- Joint and several guarantees of directors/shareholders.
- From 5% to 50% cash collateral
Takaful
- Takaful/insurance coverage is mandatory iff the asset is given as security for the financing (if applicable). You have the option to select the service offered by our panel Takaful operators or non-panel Takaful operators.
Fees & Charges
Product Disclosure Sheet
