20 September 2019

Alliance Bank Partners CGC to Provide Fast Financing for Malaysian SMEs

Press Release
20 September 2019

Alliance Bank Partners CGC to Provide Fast Financing for Malaysian SMEs

Press Release

Issuance of a new tranche valued at RM300 million to propel SMEs growth

Kuala Lumpur, 20 September 2019 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) and Credit Guarantee Corporation Malaysia Berhad (“CGC”) today entered into an agreement to provide fast and simple financing to help Malaysian small and medium enterprises (SMEs) accelerate growth.

Through CGC’s Portfolio Guarantee Scheme, Alliance Bank can help eligible SMEs that lack adequate collateral or credit track record, obtain hassle-free, working capital financing to grow their businesses. The process requires minimal documentation and CGC covers up to 70 per cent of the principal financing amount on a portfolio basis. The financing amount is for a minimum of RM100,000 and a maximum of RM1 million per SME account, with financing tenure of up to seven years.

This portfolio guarantee agreement has a tranche size of RM300 million, and forms part of the build-up to a RM1 billion portfolio with CGC by 2020.

Through the partnership with CGC, Alliance Bank has already approved RM330 million in loans from previous tranches to help about 750 SME businesses who provide employment to almost 13,750 people. The new RM300 million tranche will allow Alliance Bank to finance another 600 plus SMEs to expand their businesses.

The partnership aligns with the Bank’s and CGC’s shared vision of promoting the growth and development of SMEs in Malaysia.

Alliance Bank’s Group Chief Executive Officer Mr. Joel Kornreich said, “The SME segment is a core focus for the bank. In building up to this billion Ringgit portfolio, we stay committed to create easy access to financing and providing innovative solutions to address the pain points faced by business owners at different stages of their businesses. We want to create additional avenues to help our SME customers expand by collaborating with CGC.”

CGC President and Chief Executive Officer Datuk Mohd Zamree Mohd Ishak said, “This fifth collaboration between Alliance Bank and CGC further strengthens our joint commitment to provide greater access to financing for SMEs through our innovative and award-winning Portfolio Guarantee Scheme which is both cost effective and efficient. To date, CGC has availed over RM14 billion worth of financing via its Portfolio Guarantee Scheme which has benefited more than 27,000 SMEs.”

Malaysian-owned business establishments in the country of at least three years are eligible to apply for Alliance Bank-CGC Portfolio Guarantee Scheme.

Further information on Alliance Bank-CGC Portfolio Guarantee Scheme is available at http://www.alliancebank.com.my.

Mr Joel Kornreich, Group Chief Executive Officer of Alliance Bank Malaysia Berhad (seated right) and Datuk Mohd Zamree Mohd Ishak, President and Chief Executive Officer of Credit Guarantee Corporation Malaysia Berhad (seated left) signing the portfolio guarantee agreement as Mr Ernest Kwong Kah Wah, Head of Group SME Banking of Alliance Bank Malaysia Berhad (standing on right) and Mr Leong Weng Choong, Chief Business Officer of Credit Guarantee Corporation Malaysia Berhad (standing on left) look on.

About Alliance Bank Malaysia Berhad

Alliance Bank Malaysia Berhad and its subsidiaries, Alliance Investment Bank Berhad and Alliance Islamic Bank Berhad, is a dynamic, integrated financial services group offering banking and financial solutions through its consumer banking, SME banking, corporate and commercial banking, Islamic banking, investment banking and stockbroking businesses. The Bank provides easy access to its broad base of customers throughout the country via multi-pronged delivery channels which include retail branches, Privilege Banking Centres, Business Centres, and Investment Bank branches located nationwide, as well as mobile and Internet banking.

About Credit Guarantee Corporation Malaysia Berhad

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on 5 July 1972. It is 78.65% owned by Bank Negara Malaysia and 21.35% by the commercial banks in Malaysia. CGC aims to assist Micro, Small and Medium-Sized Enterprises (MSMEs) with inadequate or without collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has availed over 460,000 guarantees and financing to MSMEs valued over RM71 billion since its establishment.

For more information on the Alliance Bank-CGC Portfolio Guarantee Scheme, please contact:

Louisa Harrison

Alliance Bank Malaysia Berhad
Tel: 03-2604 3379
Email: louisaharrison@alliancefg.com

Mohana Arumugam

Credit Guarantee Corporation Malaysia Berhadd
Tel: 03-7806 2300d
Email: mohana.arumugam@cgc.com.my