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Contract Financing

Contract Financing is a financing package using the existing financing facilities which are already available in the Firm. 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

  • Firm Guarantee
  • Working Capital

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 Firm Guarantee (BG)

Financing Limit

  • Up to Single Customer Limit

Profit Rate

  • From BFR + 0.0% p.a to BFR + 2.5% p.a
  • Firm Guarantee Fee: 0.125% p.m

Margin of Financing

  • Revolving Credit: Up to 100% of contract cost
  • Kafalah Firm Guarantee (KBG): As per requirement by contract awarder

Financing Tenure

  • As per contract requirements

Collateral

  • Assignment of contract proceeds
  • Joint and several guarantees of directors/shareholders.
  • From 5% to 50% cash collateral