Corporate Financing

Providing corporate and SME, comprehensive financing facilities to suit their business needs.

Whether you are in need of financing for working capital, acquisition of fixed assets, project financings, purchase of business stocks or raw materials, our Corporate Banking is a complete financial solution to suit your business needs.

Products Offered

At BIBD, we offer a wide range of competitive, Shariah-compliant financing products and services on a short, medium and long term basis. These products are geared towards facilitating the business expansion of all businesses whether corporate entities or SME’s.

Naqd Financing

This is a short-term revolving financing in the form of an overdraft facility which may be utilized over the period of the financing. The purpose of the financing is to provide an additional working capital (e.g. to pay overhead expenses) and as standby fund for operation. 

Financing Amount

The amount of financing will depend on the cash flow of the company, the timing of receipts and payments, seasonal trends in the sales and so on.

Financing Period

Generally the maximum financing period is 12 months and is renewable upon maturity subject to satisfactory performance of the account. 

Payment

The profit charged for the financing shall be calculated on a daily utilization basis and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines. Payment shall be made by means of monthly profits payment and lump sum settlement of principal at the end of the financing tenor.

Demand Line Financing

This is a revolving short-term financing given especially to finance project/contract awarded by Government or Government Related Companies or any other pay-master acceptable to the Bank. This financing provides standby fund for company to pay overhead expenses, operation expenses and the like while awaiting payment.

Availment of the financing is on a draw-down basis made against certified/confirmed claims or receivables and the tenor shall be based on the expected timing of receipt of payment. The amount of draw-down shall be based on a pre-agreed percentage (up to maximum of 80% of claims or receivables amount). 

 

Financing Period

The period of financing is normally adjusted to suit the duration of project/contract with maximum of period of 12 months. The financing may be renewed upon expiry subject to satisfactory performance of the account.

Payment

The profit charged for the financing shall be calculated on a daily basis based on outstanding utilized balance and the rate is subject to the Bank’s prevailing risk mitigation and pricing. Payment shall be made by means of monthly profits payment and lump sum settlement of principal at the end of the financing tenor or full settlement upon receipt of payment for which the draw-down is made whichever is earlier.

Demand Financing

A short-term one-off lump sum financing which may be granted against confirmed or expected lump sum receivables or against contract/project awarded by Government or Government Related Companies or any other pay-master acceptable to the Bank. The financing may be used for start-up/mobilization expenses for awarded project/contract or as additional capital for business. 

Financing Period

The period of financing shall be based on the expected receipts of payment with a maximum period of 12 months. 

Payment

The profit charged for the financing shall be calculated on a daily basis and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines. Payment shall be made by means of monthly profits payment and lump sum settlement of principal at the end of the financing tenor or upon receipt of payment from pay-master.

Term Financing

This financing may be granted for short, medium or long term period depending on the company’s requirement and capacity to pay. The financing offers funding for acquisition of business assets (e.g. equipment, machineries & commercial property), purchase of stocks, minor renovation works, refinancing of assets and to facilitate other business requirements. 

 

Financing Period

Generally the financing period range between 12 months to a maximum of 84 months.

Payment

The profit charged for the financing shall be calculated based on a monthly reducing balance and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines. Payment shall be in the form of equal monthly installments made throughout the financing tenor.

Bank Guarantee

This is an irrevocable written undertaking issued by the Bank to indemnify and pay an agreed sum of monies to a principal (as the beneficiary) in case of default in fulfillment of contractual obligation by the Bank’s customer. The period of cover is normally in accordance to the contract agreement and/or requirement of the beneficiary. The Bank will be charging a fee for the issuance of the guarantee calculated based on the amount of guarantee and period of cover and the rate is subject to the Bank’s prevailing risk mitigation and pricing guideline.

There are various types of guarantees issued to suit various contractual purposes, requirements and needs. They are: Bid Bond, Performance Bond, Payment Guarantee, Security Deposit for Labour Quota.

You may visit our Other Services section to find out more.

Shariah Concept

Tawarruq

Tawarruq consist of two sales contract. The Bank will purchase Shariah-compliant commodities from a supplier and sell the commodities to the customer (1st sale contract), disclosing cost price and profit amount (“Murabahah”). Customer, as the owner of the commodities, can appoint the Bank as their disposal agent (“Wakil”) to sell the commodities (2nd sale contract) to a third party on their behalf, and as their payment agent to credit the sale proceeds to the customer’s account and/or make payment arrangements as agreed by the customer.