Tawarruq Asset Financing (TWA)

WHAT IS THE PRODUCT ABOUT?

To part finance the acquisition of assets for all sectors financed. The facility has the following features:-

i. Minimum :  RM10.0 million
ii. Maximum :  RM500.0 million (Single Customer Limit)
iii. Tenure   : Up to 25 years
iv. Margin of Financing  :  Up to 90%

WHAT IS THE SHARIAH CONCEPT APPLICABLE?

The facility is structured based on Tawarruq. It consists of an arrangement of series of sale and purchase contracts. The tawarruq arrangement in this product is via murabahah (disclosure of mark-up above the acquisition cost) form.

The brief structure and flow are as follows:

  1. Upon request and promise by the Customer to purchase an identified asset, the Bank acquires the asset from a supplier, on cash basis. The Bank is also authorized by the Customer to execute sale and purchase transactions that will be performed afterwards.

  2. The Bank then sells the asset to the Customer at a Sale Price i.e. Purchase Price with disclosed profit, to be paid on deferred. The Customer is now the owner of the asset pursuant to acceptance by the Bank.

  3. The Bank as authorized by the Customer, sells the asset to other supplier, on cash basis for disbursement purpose.

  4. The deferred Sale Price is payable by the Customer on lump sum or instalment based on the agreed tenure and payment schedule to be issued by the Bank.

Underlying Asset:

Crude palm oil or such other Shariah compliant commodities from suppliers registered in commodity market identified by BSAS

WHAT DO I GET FROM THIS PRODUCT?

i. Bank’s Purchase Price/Financing Amount(PP) RM 1,000,000.00
ii. Contracted Profit Rate (r) 10% pa (*)
iii. Tenure (t) 3 years including 1 year grace period.
iv.


 
Bank’s Sale Price (SP)
a) During Grace Period, PP x r x t
b) Normal, PP x r (annuity) x t

Total SP = (a + b)

RM8,333.33 (1,000,000 x 10%/12 x 12)
RM46,144.93, (1,000,000 x 0.04614493 x
24months
RM1,207,478.23
v. Amount Profit RM207,478.23

Note: (*) is subject to BFR (if any)

DISCLAIMER : Figures displayed are for illustration purposes only

WHAT ARE MY OBLIGATIONS?

i.
 
Monthly Installment :
 
During Grace Period, RM8,333.33
Normal Period, RM46,144.93
ii

Total amount of payment at the end of financing tenure :

RM1,207,478.23

 DISCLAIMER : Figures displayed are for illustration purposes only

WHAT ARE THE CHARGES THAT I HAVE TO PAY?

The financing may attract the following fees and charges, whenever applicable:

  1. Stamp Duties as per the Stamp Duty Act 1949 (Revised 1989)

  2. Processing Fee

  3. Changes to the Letter Offer Fee

  4. Administration Fee

  5. Transaction fees for transaction asset as charged by asset trading platform

  6. Goods & Services Tax, if applicable

WHAT IF I FAIL TO FULFILL MY OBLIGATIONS?

The Bank may impose a compensation charge on late payment (Ta’widh) at the following rate:

  1. Ta’widh at 1% per annum on the overdue instalment (where applicable) during the tenure of the facility

  2. Ta’widh at the prevailing daily overnight of Kuala Lumpur Islamic Reference Rates (KLIRR) or other rates that Bank Negara Malaysia may specify against the outstanding balance if the overdue continues beyond the maturity date of the Facility

Legal action may be taken against you by the Bank if you fail to respond to reminder notices. It may affect your credit rating which may lead to credit being more difficult or expensive to you.

The Bank also retains the following rights:

  • Review: the Bank has the right to review and terminate the facility upon occurrence of any events of defaults as agreed in the terms and conditions of the facility.

  • Bankruptcy: the Bank has the right to initiate bankruptcy proceedings if the outstanding amount reaches a certain limit.

WHAT IF I FULLY SETTLE THE FINANCING BEFORE ITS MATURITY?

The Bank shall grant Ibra’ (Rebate) under the following circumstances, subject to applicable terms and conditions :

  1. Early redemption

  2. Partial redemption/prepay/advance payment

  3. Facility is not fully disbursed.

Calculation of the Ibra’ (with fixed payment schedule) as per Attachment 1.

DO I NEED A GUARANTOR/SECURITY/COLLATERAL?

Yes. Among the security requirement include project assets, debenture, assignment of concession agreement/ project account/ insurance policy, debenture, guarantee etc. depending on the type of project and financing.

The Guarantor as surety shall be liable to BPMB as creditor for the default committed by the Customer being the principal debtor.

WHAT DO I NEED TO DO IF THERE ARE CHANGES TO MY CONTACT DETAILS?

It is important that you inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner.

WHERE CAN I GET ASSISTANT AND REDRESS?

If you have any enquiries with regard to the facility, you may contact:

Business Group
Bank Pembangunan Malaysia Berhad
Leval 26, Menara Bank Pembangunan
Jalan Sultan Ismail, Kuala Lumpur
Tel: 03-2611 3110
Email:  sulaiman.ar@bpmb.com.my

If you wish to complain about the products and services provided by the Bank, you may contact:

Corporate Communication
Level 14, Menara Bank Pembangunan
Jalan Sultan Ismail, Kuala Lumpur
Tel: 03-2611 3888
Email: feedback@bpmb.com.my

If your query or complaint is not satisfactorily resolved by the Bank, you may contact:

Bank Negara Malaysia LINK or TELELINK
Block D, Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Tel: 1-300-88-5465
Fax: 03-2174 1515
Email: bnmtelelink@bnm.gov.my

WHERE CAN I GET FURTHER INFORMATION?

Should you require additional information of the product, please refer to our brochures or our website at www.bpmb.com.my or call 03-2611 3888

OTHER FINANCING ASSET PACKAGE AVAILABLE?

We also provide asset acquisition financing, revolving working capital financing, kafalah Bank Guarantee and also range of capital market products.

 

IMPORTANT NOTE :
LEGAL ACTION MAY BE TAKEN AGAINST YOU IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR FINANCING.

The information provided in this disclosure sheet is updated on 26 November 2018