EXIM BANK MALAYSIA(PRODUCTS/SERVICES)

CONVENTIONAL FINANCING

1) OVERSEAS PROJECTS/CONTRACT FINANCING FACILITIESy y y

Available to Malaysian companies. Loan disbursements are generally made direct to the Malaysian suppliers / contractors. The facility provides financial support to Malaysian investors/contractors undertaking projects overseas

FACILITIES1) INVESTMENT Purpose - To finance the development, upgrading or expansion of infrastructural facilities, plant and building and fixed assets purchase, such as machinery equipment. Margin of Financing - Up to a maximum of 85% of Project Cost or Contract Value Eligibility - Malaysian suppliers / contractors

Tenure y Up to a maximum of 10 years inclusive grace period not exceeding 2 years Interest Rate y Cost of fund plus spread Currency y US Dollar or other applicable currencies Repayment y Quarterly Disbursement y Direct to the suppliers / contractors

Security Any or not limited to the following: y Corporate Guarantee y Shareholders and / or Directors Guarantee y Landed property y First charge on fixed and floating assets of the borrower y Assignment of relevant contracts, agreements, insurance policies inclusive of all project rights and benefits

2) CONTRACTS Purpose y To finance working capital and bonds requirements for the undertaking of overseas contracts Margin of Financing y Working capital and bonds: up to the requirements of the contract Tenure y Up to a maximum of 10 years Interest Rate y Cost of fund plus spread

Currency y US Dollar or other applicable currencies Repayment y Against contract proceeds: Bullet and/or progressive repayments Disbursement y Direct to the suppliers / contractors y Overhead expenses direct to borrowers

Security Any or not limited to the following: y Corporate Guarantee y Shareholders and / or Directors Guarantee y Sinking fund y Cash margin against bond issuance y Assignment of contract proceeds y Others

2) SUPPLIER CREDIT FACILITYy

Malaysian manufacturers and traders can take advantage of this facility to support their export trade financing requirements through trade financing facility, Pre-Shipment and Post-Shipment Supplier Credit Facility.

MANUFACTURING COMPANIES / TRADERS1) PRE-SHIPMENT SUPPLIER CREDIT Purpose y An order based trade financing option for the export of goods which may or may not be supported by Letters of Credit. Margin of Financing y Up to a maximum of 85% of export order Tenure y Up to a maximum of 120 days y A longer tenor may be extended depending on products

Interest Rate y Cost of fund plus spread Repayment y Against export proceeds Security Any or not limited to the following: y Corporate Guarantee y Shareholders and / or Directors Guarantee y Assignment of Export or Contract Proceeds y Assignment of Export Credit Insurance (if applicable) y Others

3) EXPORT OF SERVICE FACILITYy

Multi option facility offered to Malaysian companies and/or Malaysian companies incorporated overseas, engaged in the provision of export services or development of product/services for the global market.

Purpose y Provision of working capital/guarantee/assets financing to accommodate performance of foreign services contracts y Acquisition of technology for product/services for the global market Margin of Financing y Up to a maximum of 70% of the contract value Tenure y Up to a maximum of 5 years Interest Ratey

Cost of fund plus spread

Repayment y Against Contract proceeds or fixed repayment either monthly or quarterly Security Any or not limited to the following: y Corporate Guarantee y Shareholders and / or Directors Guarantee y Assignment of relevant contracts, agreement and insurance polices y Others, as required.

4) BUYER CREDIT FACILITYy y y

Loan extended directly to a foreign buyer or lending institution to facilitate the import of Malaysian goods and services. Loan disbursements are made directly to the Malaysian exporter / contractor. The facility provides opportunities for the Malaysian exporter and contractor in bidding for/performing overseas jobs and contracts.

Purpose y For the development, upgrading or expansion of infrastructural facilities, plant and building or fixed assets purchase, such as machinery and equipment, as well as any other Malaysian goods and services Margin of Financing y Up to a maximum of 85% of Project Cost or Contract Value. (100% to foreign government) Eligibility y The supplier/contractor must be a Malaysian owned and controlled company y For the export of Malaysian goods and services

Tenure y Up to a maximum of 10 years including a grace period not exceeding 2 years Interest Rate y Cost of fund plus spread Currency y US Dollar or other applicable currencies Repayment y Quarterly

Disbursement y Direct to the supplier/contractor Security Any or more of the following: y Corporate Guarantee y Government Guarantee/Bank Guarantee y Other securities acceptable to the Bank

5) GUARANTEE FACILITYThe guarantee facilities are available to facilitate the issuance of bonds for overseas contract undertaken by Malaysian contractors and also to enable Malaysian investors to raise funds in overseas.

Purpose y To facilitate bond and guarantee issuance requirements including Tender/Bid Bond, Performance Bond, Advance Payment Bond, Standby Letter of Credit (SBLC), etc Eligibility y Against overseas contracts only or investments Tenor/Period of Guarantee y Up to the requirement of the contract or funding requirement of investment project

Commission y Up to a maximum of 3.0 % p.a. Security Any or not limited to the following: y Corporate Guarantee y Shareholders and / or Directors Guarantee y Cash margin y Assignment of relevant contracts, agreements and insurance policies

6) EXPORT CREDIT REFINANCING (ECR) SCHEMEy

y

Export Credit Refinancing (ECR) Scheme provides short-term pre and post shipment financing to direct/indirect exporters. It is available to a manufacturer or trading company with ECR credit line duly established with commercial bank. A Pre Shipment ECR facility facilitates purchases of materials and overhead expenses while Post Shipment ECR provides financing to direct exporter upon shipment.

1) PRE-SHIPMENT ECR i) Order-Based Method of Financing y Financing is against the export order received from overseas buyer or direct exporter Margin of Financing y Up to a maximum of 95% of value of export order or ECR Domestic Letter of Credit / ECR Domestic Purchase order / local purchase order

Tenure y Up to a maximum of 4 months Interest Rate y Currently 4.00%, subject to change Repayment Upon receipt of: i) Direct Exporter - export proceeds - post shipment proceeds ii) Indirect Exporter - proceeds from direct exporter

2) POST-SHIPMENT ECR i) Bill of Discounting Method of Financing y Financing against export documents Margin of Financing y Up to a maximum of 100% of export bill value. Subject to availability of ECR credit limit with the commercial bank and EXIM Banks administrative limit

Tenurey

Up to a maximum of 6 months

Interest Rate y Currently 4.00%, subject to change Repayment Upon: - receipt of export proceeds - maturity of the post-shipment bill whichever is earlier

7) EXIM OVERSEAS GUARANTEE FACILITY (EOGF)Objective of EOGF To assist Malaysian Companies that are bidding for / have secured overseas contracts to obtain credit facilities from financial institutions (FIs)

Eligibility i) Borrower / Contractor (ie. PFIs Clients) Must fulfill ALL of the following:y

Malaysian owned or controlled companies as per Exchange Control Act 1953 / ECM Guidelines or any other guidelines or Acts issued from time to time (including overseas subsidiaries owned or controlled by Malaysian(s) Companies negotiating / bidding to secure or have already secured contracts or projects overseas Main and sub contractors are eligible

y

y

ii) Type of Contract y Construction y Supply of capital or semi capital goods, which include elements of services and commissioning y Services iii) Economic Sector - All economic sectors

Purpose of Financing y To provide financial guarantee for overseas contracts, i.e. for tender, advance payment, performance and defect liability (retention) purposes y To finance the purchase of raw material, equipment and machinery as well as overheads pertaining to the production, construction, fabrication, installation and commissioning of overseas contracts / projects y To finance the guarantee fee and / or insurance premium

Facility Type All types of credit facilities including but not limited to: y Trade finance facilities including Bank Guarantees (Contract Bonds) y Revolving Credit (except OD) y Term Financing Amount of Financing y Up to RM100 million, or its equivalent in Foreign Currency per project / contract Tenure y Up to 10 years, inclusive of grace period, if any

Currency y Ringgit Malaysia, US Dollar, Pound Sterling, EURO, Japanese Yen Pricing y Fund-based, i.e. Revolving Credit, Trust Receipts etc. : - Effective Cost Of Funds (e-COF) plus maximum spread of 1.0% p.a. y Bank Guarantees and Bonds: - Maximum commission of 0.5% p.a. y Other non-Fund-based as per ABM / BNM Guidelines Guarantee Fee for EOGF y 1.5% p.a.

Collateral / Security / Credit Support to be provided by the borrower to PFI Any or not limited to the following: y Assignment of contract proceeds, as well as Insurance Policies, SBLC, Bank Guarantees / Bonds, if any. y Sovereign Guarantee y FDR & build up of sinking funds y Debenture y Directors Joint & Several Guarantee y Holding / Associated company Guarantee and / or 3 rd party Corporate Guarantee y Other tangible assets, if required

8) MALAYSIAKITCHEN FINANCING FACILITYObjective differentiate y To assist Malaysian entrepreneurs in obtaining credit / financing facilities for the purpose of setting up or expanding existing Malaysian restaurants overseas Major Goals y To promote and export Malaysian cuisine, agriculture produce, agro-based products & handicrafts abroad. y To develop international Malaysian restaurant franchises & brand with certification marks of quality.

Purpose y To part-finance the construction/renovation cost of the restaurant, purchase of equipment, utensils and/or appliances required for the purpose of operating the restaurant. y To part-finance the working capital for the operation of the restaurant Margin of Financing y Up to a maximum of 90% of the project cost

Eligibility y Malaysian owned and/or controlled companies with minimum shareholding of 51% of total registered capital either incorporated under Malaysian Companies Act 1965 or under the Private Limitedy

y

Company in the country of operation. Related working experience of either one (1) year in overseas restaurant or three (3) years locally. However, if the applicant /borrower is submitting the application via Myfranchise Sdn. Bhd., the experience requirement is waived. Open to Malaysian owned franchise.

Tenure y Up to a maximum of five (5) years (inclusive of grace period not exceeding 9 month.) Pricing y 3.0% p.a. Currency y Ringgit Malaysia (RM) Repayment y Monthly

Credit Support y Personal guarantee, Directors Joint & Several Guarantee and/or Corporate Guarantee Security Any or not limited to the following: y Debenture over fixed and floating assets of the restaurant y Charge over land and/or restaurant overseas and/or Malaysia y Pledged of Fixed Deposits and/or Shares y Establishment of Debt Service Reserve Account (DSRA)

ISLAMIC FINANCING

1) LETTER OF CREDIT-iy y

The Letter of Credit-i facility is available to facilitate the importation of goods. The subject of the facility must Shariah compliant.

Purpose y To facilitate the importation of goods Margin y Depending on the contract value Tenor y Up to requirement of the contract Fee y Up to a maximum of 0.1% per month of LC-i amount Currency y USD, EURO, RM and other acceptable currency

Security y Cash Collateral / Sinking Fund Account y Corporate Guarantor y Shareholders / Directors Guarantee y First charge on fixed and floating asset of customer y Charge on Landed Property y Assignment of contract/payment proceeds / Takaful / project rights and benefits y Assignment of Designated Accountsy y

Pledge of shares (Shariah Compliant) General Investment Account (GIA).

2) THE OVERSEAS PROJECT FINANCINGFINANCING-iy

y

The Overseas Project Financing i facility is available to Malaysian companies. The facility provides financial support to Malaysian investors/ contractors undertaking projects overseas such as infrastructure, manufacturing and other developmental projects. The subject of the facility must Shariah compliant

Purpose y To finance the development, upgrading or expansion of infrastructural facilities, plant and building and fixed asset purchases, such as machinery and equipment. Must be Shariah Compliant. Shariah Concept y Istisna Margin Of Financing y Up to a maximum of 85% of Project Cost or Contract Value. Eligibility y Malaysian suppliers/contractors

Tenor y Up to a maximum of 10 years inclusive of grace period not exceeding 2 years

Profit Rate y Cost of fund plus spread Currency y USD or other acceptable currencies Payment y Against cash flow of the project. Disbursement y Direct to the suppliers/contractors

Security Any but not limited to the followings: y Marginal Deposit /Sinking Fund Account y Corporate Guarantor y Shareholders/Directors Guarantee y First charge on fixed and floating asset of customer y Charge on Landed Property y Assignment of contract/payment proceeds/insurance proceeds/project rights and benefits y Assignment of Designated Accounts y Pledge of shares or General Investment Account

3) THE OVERSEAS CONTRACT FINANCINGFINANCING-iy

y

The Overseas Contract Financing i facility is available to Malaysian companies. The facility provides financial support to Malaysian investors/contractors undertaking projects overseas such as infrastructure, manufacturing and other developmental projects. The subject of the facility must Shariah compliant.

Purpose y To finance working capital and bonds requirements for the undertaking of overseas contracts. Must be Shariah Compliant Shariah Concept y Istisna Margin Of Financing y Up to maximum 85% of Contract Value Eligibility y Malaysian suppliers/contractors

Tenor y Up to a maximum of 10 years inclusive of grace period not exceeding 2 years Profit Rate y Cost of fund plus spread Currency y USD or other acceptable currencies Payment y Against contract proceeds: Bullet and/or progressive repayment Disbursement y Direct to the suppliers/contractors y Overhead expenses direct to borrower

Security Any but not limited to the followings: y Marginal Deposit /Sinking Fund Account y Corporate Guarantor y Shareholders/Directors Guarantee y First charge on fixed and floating asset of customer y Charge on Landed Property y Assignment of contract/payment proceeds/insurance proceeds/project rights and benefits y Assignment of Designated Accounts y Pledge of shares or General Investment Account

4) BANK GUARANTEE-i GUARANTEEy

y

The guarantee facility is available to facilitate the issuance of bonds for overseas contracts undertaken by Malaysian contractors and also to enable Malaysian investors to raise funds overseas. The subject of the facility must Shariah compliant.

Purpose y To facilitate bond and guarantee issuance requirements of a project or contract Shariah Concept y Kafalah Amount of Guarantee y Depending to the Project/Contract value Eligibility y Against overseas contracts or investments y The subject of the facility must be for Shariah compliant purposes

Tenor y Up to the requirement of the contract or funding requirement of the investment project Fee y Up to a maximum of 3.0% per annum of the guaranteed amount Currency y USD, EURO, RM and other acceptable currency

Security Any but not limited to the followings: y Cash Collateral / Sinking Fund Account y Corporate Guarantor y Shareholders / Directors Guarantee y First charge on fixed and floating asset of customer y Charge on Landed Property y Assignment of contract/payment proceeds / Takaful / project rights and benefits y Assignment of Designated Accounts y Pledge of shares (Shariah Compliant) y General Investment Account (GIA).

5) IDB-CO FINANCING IDBThis is an arrangement between EXIM Bank of Malaysia and International Trade Finance Corporation of Jeddah, Saudi Arabia to ensure secured payment transaction via Irrevocable Commitment to Reimburse (ICR), benefitting exporters of goods from Malaysia to OIC member countries.

Purpose y To facilitate Malaysian exports by extending import financing facilities to buyers from OIC member countries to import goods from Malaysia Benefit To Customer i) Foreign Customers - Competitive profit rate vis--vis host countrys high cost of borrowing - An import financing option as opposed to those offered locally or by other exporting countries ii) Malaysian Exporters / Contractors - Enable exporters / contractors to expand abroad and into nontraditional market;

Eligibilityy

Importer/Buyer from OIC Member Countries with minimum three (3)

years in business and Exporter must be Malaysian incorporated Companies Margin of Financingy

Up to a maximum of 100% of the export invoice value

Tenory

Up to a maximum of 180 days

Minimum Transaction Valuey

USD200,000

Currency of Transaction y USD or SDR Repayment y Against sales proceeds Security Any or not limited to the following: y Bank Guarantee y Government Guarantee y Insurance Guarantee by Export Credit Agency (ECA) y Corporate Guarantee y Directors Guarantee y Others

6) BUYER FINANCING-i FINANCINGy y

Islamic financial scheme extended to foreign buyers/importers to buy Malaysian goods and services These shall include those goods that are produced in Malaysia and services rendered in Malaysia or overseas

Benefit To Customer i) Foreign Customers - Competitive profit rate vis--vis host countrys high cost of borrowing - Enable customers to obtain medium and long term financing - An import financing option as opposed to those offered locally or by other exporting countries. ii) Malaysian Exporters / Contractors - Enable exporters / contractors to expand abroad and into nontraditional market - Enable exporters / contractors to be competitive when bidding or negotiating for jobs.

Eligibility y The supplier/contractor must be a Malaysian owned and controlled company Margin of Financing y Up to a maximum of 85% of the Project cost or the Contract Value Tenor y Up to a maximum of 10 years inclusive of grace period not exceeding 2 years Profit Rate y Cost of fund plus spread. The spread shall be based on the risk rating of the company and other non- quantitative considerations

Currency of Transaction y US Dollar or other applicable currencies Security A combination of but not limited to the following: y Corporate Guarantee y Shareholders and/or Directors guarantee y Landed property y Charge on fixed or floating assets of customer y Assignment of Takaful/insurance policies, agreements, contract proceeds, rights and benefits

7) SUPPLIER FINANCING-i FINANCINGMalaysian manufacturers and traders can avail themselves to EXIM Banks Islamic trade financing facility to support their export trade financing requirement. The facility offered is based on the concept of Murabahah and Bai Al Dayn.

Purpose y The financing shall cover purchase of raw materials, components, production overhead and finished goods during pre-shipment period. y This shariah compliant short term trade facility is also available to finance exporters working capital requirement during post-shipment period pending receipt of export proceeds Benefit To Customer y Enable exporters to grow their international business y Enable exporters to be competitive with flexible credit period Type of Financing y Pre-shipment - working capital for purchase of domestic/foreign inputs prior to shipment y Post-shipment working capital financing after shipment

Margin of Financing y Pre-shipment - up to 85% of export order value.Post-shipment up to 100% of export bill Tenor y Pre-Shipment up to 120 days (a longer tenor may be allowed depending on the merit of the case) y Post-Shipment up to 180 days (a longer tenor may be allowed depending on the merit of the case) Profit Rate y Cost of fund plus spread. The spread shall be based on the risk rating of the company and other non- quantitative considerations Repayment y Against export proceed

Security Any but not limited to the following: y Corporate Guarantee y Shareholders and/or Directors guarantee y Landed property y Charge on fixed and/or floating assets of customers y Assignment of Takaful/insurance policies, agreements, contract proceeds, rights and benefits

8) MALAYSIAKITCHEN FINANCINGFINANCING-iy y

Shariah compliant financing product that assist Malaysian to venture into restaurant business overseas. Its objective is to promote the export of Malaysian Cuisine, Agrobased products, handicrafts abroad and also to develop international Malaysian restaurant franchise overseas

Eligibility y Malaysian owned and/or controlled companies with minimum shareholding of 51% in the operating company, either incorporated in Malaysia or in the country of operation y Related working experience of either one (1) year in overseas restaurant or three (3) years locally. However, if the applicant applies through Myfranchise Sdn Bhd, the requirement is waivedy

Open to Malaysian owned franchise

Margin of Financing - Up to 90% of project cost, inclusive of three (3) months working capital

Tenor y Up to a maximum of five (5) years (inclusive of grace period not exceeding 9 month.) Grace Period y Up to six (6) months from date of first disbursement. During the grace period, the customer shall pay the profits. Profits during the grace period shall be calculated on actual basis Profit Rate y At 3.0 % per annum based on monthly rest Currency y Ringgit Malaysia (RM)

Payment y Payment shall be made on monthly rest Special Condition y The restaurant must serve Malaysian dishes. Security The following security shall be acceptable but not limited to: y Debentures y Landed property with reasonable value y General Investment Account y Other Shariah compliant financial instrument or securities

CREDIT INSURANCE FACILITES

1) BOND INDEMNITY SUPPORT FACILITYy

y

Insurance facility which is designed to assist contractor in raising the necessary surety bond from the market (i.e. from either bank or insurance company) for its overseas project. It is designed not to supply, but to supplement the surety bond market capacity.

Tenor y The policy is able to cover risk of up to 5 years Indemnity y The coverage provides indemnity of up to 90% of the amount of loss suffered by the policyholder Premium & Premium Payment y Premium rate ranges from 0.5% p.a. 2.5% p.a., depending on the risk profile of each transaction.

2) BOND RISK INSURANCEy

Insurance coverage extended to a contractor (who is required to provide surety bond to its principal or contract awarder when undertaking a project overseas) who is concerned that such bond is unfairly called by the principal during the validity period of the surety bond In addition to that, the coverage is also extended to cover any fair calling made by the principal on the bond as a result of the occurrence of political events in the country where the project is located, that deters the contractor to continue performing its duty as outlined in the contract agreement.

y

Tenor y The policy is able to cover risk of up to 5 years Indemnity y The coverage provides indemnity of up to 90% of the amount of loss suffered by the policyholder Premium & Premium Payment y Premium rate ranges from 0.5% p.a. 2.0% p.a., depending on the risk profile of each transaction.

3) COMPREHENSIVE POLICYIn giving credit to your overseas buyers, you are immediately exposed to possible loss of not being paid. y Meanwhile, exporting in new and unfamiliar markets with high economic and political risks even on Irrevocable Letter of Credit terms does not give you a high comfort level of getting paid. y The protection you need from your risks is the Comprehensive Policy of EXIM Bank.y

Percentage of Cover y Commercial Risk 90% and Non-Commercial Risk 95%. In case of non-acceptance cause of loss, the exporter is to bear the first loss of 20% of the GIV while EXIM Bank bears 90% of the balance of loss Premium Rate y Premium rates primarily depend on EXIM Banks grading of the market with which the business is done and terms of payment. In general, the riskier the market and the longer the credit terms, the higher the premium Tax Relief y Risk premium paid in respect of EXIM Bank's Comprehensive Policy is eligible for double deduction tax relief under Section 33 of the Income Tax 1967.

4) SPECIFIC POLICYIntended for exporters of capital goods involving: y supply and installation of plant and equipment y building of ships and specialized vessels y fabricating of steel structures The Specific Policy applies to individual contracts and provides coverage from either date of contract (Specific Contracts Policy) or from date of shipment (Specific Shipments Policy)

Risk Covered y Commercial Risks y Economic Risks y Political Risks y Unforeseeable Risks Percentage of Cover Based on the lower amount of loss or gross invoice value: y Commercial Risk 90% y Non-commercial Risk 95% Premium rates y Primarily depend on the grading of the market and terms or payment. In general, the riskier the market and the longer the credit terms, the higher the premium rates

5) BANK LETTER OF CREDIT POLICY (BLCP)BLCP helps the banks / exporters by: y Providing relief against the country risks y Providing relief against the issuing banks risks y Encouraging exporters to sell in non-traditional and emerging markets y Promoting increased participation of banks in trade finance

What is the Extent of Indemnity? y The policy provides indemnity to banks for up to 95% of the face value of the ILC or the gross invoice value of the shipment made, whichever is lower Premium Rates y To be quoted upon application and depends on: y Tenor of LC y Buyer country y Foreign issuing banky

Information on buyer & exporter

Claims Waiting Period y The claims' waiting period is not earlier than 4 months from the due date of the ILC

6) OVERSEAS INVESTMENT INSURANCEAs a private investor, you are capable of evaluating the commercial aspects of doing business overseas. However, you may be hesitant to commit your capital to a project especially if you perceive the long term political stability in the host country to be uncertain. To overcome your hesitation and allay your fears, EXIM Bank through the Overseas Investment Insurance (OII) programme can help to protect your investment and consequently your profits.

Protecting Your Investment y EXIM Banks OII covers up to 90% of your losses due to 4 types of political risks: i) Transfer Restriction ii) Expropriation iii) War and Civil Disturbance iv) Breach of Contract

Cost Of Coverage y Premium A premium is charged annually on the Current Amount and the Standby Amount on a case to case basis depending on the project risk profile and country risk. y Handling fee A one-time handling fee of up to RM1, 000.00 is charged at the time of submitting the Definitive Application y Minimum Premium When you terminate your guarantee within a period of 3 years, a minimum premium is payable

7) BUYER CREDIT GUARANTEEy

y

Unconditional and irrevocable in which the lending bank is guaranteed repayment of the principal and any interest due to it under loan If the borrower/buyer fails to pay any installment in full or any interest due, EXIM Bank pays the bank between 3 and 6 months after the date on which the borrower was due to pay. EXIM Bank will also pay interest on the defaulted amount for the period the bank has to wait for its payment

Eligibility Criteria y The loan must be in support of a cash contract with minimum value of RM2 million or the foreign currency equivalent y The credit or repayment period must be appropriate to the contract concerned which should be at least 2 years and the maximum repayment period allowed is 10 years y The lending bank can finance up to 85% of the contract value, while the balance must be paid directly by the buyer to the exporter as down payment prior to the start of the credit periody

The commercial contract must have a minimum Malaysian content of 30% in the form of goods and services

8) MULTI CURRENCY TRADE FINANCING SCHEME (MCTF)Facility granted to the SMEs to obtain working capital financing from the banks without the need to furnish any collateral. All transactions under this facility are to be with the Letter of Credit issued by the overseas buyers

Objectives of MCTF y To facilitate the exports of Malaysian goods and/or services overseas, in particular, to the G-15, OIC and ASEAN countries. y To enable Malaysian SME exporters access to Pre and PostShipment working capital trade financing facility from banks without any collateral Benefits of MCTF y Attractive financing costs including EXIM Banks premium. y Nominal Stamp Duty at RM10 for loan documents. y Lower legal costs at 10% of solicitors scaled fees or RM500, whichever is higher. y Fast track approval. y Standard documents including application forms, Letter of Offer, Facility Agreement and so on

9) INDIRECT EXPORTERS FINANCING SCHEME (IEFS)Objectives of IEFS y To support Malaysian exports by providing backward linkages financing facility. y Provides post-delivery financing to Indirect Exporters.

Purpose y For the purpose of enabling the Indirect Exporter to discount the trade receivables in respect of goods supplied/services rendered to the Direct Exporter Maximum Period(Period Financing) y The Indirect Exporter can grant a maximum credit period of up to 120 days to the Direct Exporter. A 60 days extension subsequent to the maximum credit period can be granted making a total of 180 days Percentage of Cover y Up to 90% of the banks loss

Percentage of Financing y Up to 100% of invoice value Commencement of Cover y In respect of goods sold, from the date of delivery of goods or in respect of services performed, from the date of submission of invoice

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