Services

Contract Financing

Contract Financing offers financing to clients who are Main Contractors or Nominated Sub-Contractors having secured contract(s) from approved awarding parties mainly MNC, GLC, PLC, government ministries, department and agencies. Objective of the 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:

• Construction and infrastructure projects including civil, mechanical, electrical and information & communication technology works.
• Other business services contract including provision of service and maintenance, Oil and Gas, Infrastructure

Who are eligible:

• 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 Steps:

• Pre-job 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:

• Financial Institutions may finance up to 100% of the contract cost
• The financing limit for fund-based facilities (excluding Guarantees) is guided by the highest deficit position from the contract’s projected cash flow