CAPEX Financing for Sustainable Projects
Finance your purchase and installation of equipment, machinery or systems for sustainable projects with us
Let us be part of your transition journey. Our financing packages are complemented with takaful and energy efficiency solutions to get you on track to meet your sustainability goals.
Key Features
- Financing limit of up to RM1 million.
- Tenure of financing of up to 7 years.
- Guarantee coverage of up to 70% of financing amount from Credit Guarantee Corporation (“CGC”)*.
- Applicant is required to meet certain environmental, social and governance (“ESG”) criteria to be eligible for this financing package.
- Financing is via Commodity Murabahah Term Financing-i (“CMTF-i”) and is only allowed for purposes that do not contravene Shariah principles. CMTF-i is structured based on the Shariah contract of murabahah via tawarruq.**
** Murabahah is a contract involving the sale of assets at cost plus profit on deferred payment terms. Tawarruq refers to the arrangement for the purchase and sale of commodities to facilitate execution of the Murabahah contract.
Purpose of Financing
- For financing the purchase and installation of equipment, machinery or systems for sustainable projects (capital expenditure).
Pricing
- Up to Base Financing Rate + 3% p.a. inclusive of guarantee fee.
Who Can Apply?
- Small and Medium Enterprises (“SMEs”) as defined by National Entrepreneur and SME Development Council (“NESDC”) and Mid-Size Companies (“MSC”).
- Businesses registered in Malaysia, Malaysian controlled and Malaysian-owned businesses (at least 51% shareholding).
- Sole-Proprietorships, Partnerships and Private Limited Companies.
- Minimum business turnover of RM500,000.
- Business establishment of at least 3 years.
Renewable Energy Certificate
- A customer that applies for financing under the Islamic Sustainability Financing Programme and meets certain criteria will be eligible to receive a renewable energy certificate (“REC”) as an incentive from Alliance Islamic Bank at zero cost.
- REC is an instrument that represents the legal rights to the environmental attributes of renewable energy (electricity) generation.
- REC helps to lower a customer’s gross market-based scope 2 of Green House Gas (“GHG”) Protocol.
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