Bank Islam MoU with SEB, SJPP to provide financing for vendors

Borneo Post – Sarawak Edition

6 November 2019

Bank Islam MoU with SEB, SJPP to provide financing for vendors

KUCHING: Bank Islam Malaysia Bhd (Bank Islam) recently signed a Memorandum of Understanding (MoU) with Sarawak Energy Bhd (SEB) and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to provide financing solutions for vendors listed under SEB’s Vendor Financing Programme.

With a total allocation of RM300 million, the programme aims at improving access to financing and liquidity to vendors with secured contracts from SEB and are in compliance with Bank Islam’s credit assessment and SJPP’s eligibility and criteria.

Head of Commercial Banking, Ahmad Haliman Abdul Halim signed the MoU on behalf of Bank Islam, while SEB was represented by Group Chief Operating Officer, Lu Yew Hung and SJPP by its General Manager, Azlan Mohd Agel.

The signing ceremony was witnessed by Bank Islam’s East Malaysia Region head Abdul Malek Abdullah, SEB’s Legal General Manager, Stephanie Gae Chin and SJPP Senior General Manager, Juanita Rusmini Abdul Jalil.

“Bank Is lam has been taking an aggressive approach in encouraging projects that exemplifies our value-based intermediation (VBI) mission, including providing financing with a positive impact on the economy, community and the environment,” Ahmad Haliman said.

“In supporting SEB’s Vendor Financing Programme, Bank Islam can assist vendors with small contracts to gain ac cess to financing that will help them execute projects awarded by SEB or its subsidiaries according to schedules.”

As part of the initiative, SJPP, a wholly-owned agency under the Ministry of Finance; will act as the credit guarantee provider. SJPP will support the programme by providing up to 70 percent credit guarantee to eligible vendors.

“This exciting collaboration will broaden the Bank’s business market as the contracts awarded by SEB will be financed under the Vendor Financing Programme. With total contracts awarded by SEB of more than RM500 million a year, Bank Islam is in a better position to help the vendors access the capital they need to strengthen their business capacity and capabilities,” Ahmad Haliman said.

He added that Bank Islam is proud to be partnering with SEB and SJPP in embracing Government’s initiative in promoting greater energy sustainability in the country, at the same time contributing to Sarawak’s need for reliable and renewal energy in achieving sustainable growth and prosperity.

Bank Islam is committed to being part of the financial ecosystem in providing business solutions and adds value to SEB’s Vendor Financing Programme vendors.

The bank also takes great pride in its innovative approach towards client servicing by offering the most extensive network coverage and capabilities in meeting the energy sector requirements.

The partnership with SEB and SJPP is hoped to further catalyse Malaysia’s green technology initiatives for a sustainable future.