IMMIGRATION PROCEDURES
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Contract Financing
Overview
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Contract Financing which is specifically tailored for a specific project or contract..Financing which is specifically tailored for a specific project or contract. The financing package varies in accordance to the type of contracts i.e. construction (civil, infrastructure), supply, services etc.
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The financing package provides financial support through every stage of the project.
Maximum Contract Amount
No minimum or maximum amount of financing
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Repayments
Can be OD,Trade Facilities or Bank Guarantees
Interest Rate
Base on facilities
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Speed
1-3 Months
How Does Contract Financing Work
Features And Eligibility Criteria
General Features
Contract Financing Scheme is a financing package based on product bundling concept of financing facilities which is already available in the Bank
Mechanics of Financing
Purpose of the loan facilities is to finance the implementation of contract(s) until full completion
The financing mechanism works by way of assigning the contract proceeds from the awarding parties direct to the Bank. Financing is offered on a pre-implementation or post-completion basis, or a combination of both
Types of Contract
Supply contract / direct supply or with added value in the form of installation, testing, commissioning, training, etc
Construction and infrastructure projects including civil, mechanical, electrical and information & communication technology works
Other business services contract including provision of service and maintenance
Eligibility Criteria
Applicant must be the Main Contractor or Nominated Sub-Contractor
Applicant must be registered with either of the following
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Ministry of Finance (MOF)
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Contractor Service Centre (PKK)
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Construction Industry Development Board (CIDB)
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Other relevant licensing or registration bodies
Financing Concept
Pre-implementation financing: Normally comprises guarantees as provided for and required under the contracts, as well as working Capital financing to facilitate the completion of the contracts
Post-completion financing: Strictly financing on discounting of invoices already submitted to awarding parties or progress claims duly certified by the awarding parties
Margin of Financing: The Bank may finance up to 100% of the contract cost
Financing Limit: The financing limit for fund-based facilities (excluding Guarantees) is guided by the highest deficit position from the contract’s projected cash flow
Contract Financing
Financing which is specifically tailored for a specific project or contract..Financing which is specifically tailored for a specific project or contract. The financing package varies in accordance to the type of contracts i.e. construction (civil, infrastructure), supply, services etc.
The financing package provides financial support through every stage of the project.
For construction project, pre and post construction financing can be arranged.
Eligibility
• Contractors with good track records with awarders who are acceptable to bank
• Contractors/Sub-contractors must be registered with Constructions Industry Development Board
(CIDB) and Pusat Khidmat Kontractor (PKK) or any other relevant authorities.
Financing Facilities
We have a range of financing facilities that can be tailored to your project needs:
• Overdraft (Against Contract/Claims)
• Trade Facilities
• Bank Guarantees (Tender Guarantee/Advance payment Band/Performance Bond)
Flexible Financing Option
• No minimum or maximum amount of financing*
• Possibility of financing up to 3 claims per project at any one time