Tourism Infrastructure Fund

 
Tourism Infrastructure Fund
Purpose
  • To finance incremental cost of new and existing project excluding working capital.
  • For acquisition of land, a maximum amount of 40% of the land/project cost, whichever lower is allowed.
  • Financing for following purposes are not allowed:-
    1) Financing for acquisition and taking over existing productive capacity.
    2) Financing of casinos.
Fund Size RM2.4 billion.
Financing Rate Fixed rate 4.0% - 5.5% per annum
Maximum Tenure Up to 20 years.
Financing Limit
  • Minimum: RM5.0 million.
  • Maximum: RM50.0 million or up to 80% of total project cost.
Security

Acceptable security coverage by the Bank (but not limited to the followings):-

  • First fixed legal charge;
  • Debentures;
  • Third party charge (if required); and/or
  • Joint and several guarantee of Directors (in their personal capacity)/Corporate/Kafalah Bank Guarantee.
Eligibility
  • Applicants must be Malaysian-owned (at least 51%).
  • All existing and new enterprises carrying out or planning to carry out tourism infrastructure projects are eligible.
  • Minimum paid-up capital of RM5.0 million or minimum of 20% from the total loan, whichever is higher.
  • Any other conditions imposed by the Bank or Ministry of Tourism and Culture (MOTAC). (i.e. endorsement from MOTAC such as Letter of Support etc.)
Financial Covenants
  • Maximum gearing ratio 4 : 1
  • Minimum Financing Service Coverage Ratio 1.2 : 1
Nature of Project
  • Projects must be in Malaysia.
  • Projects that contribute towards tourism industry. Priority given to following non-exhaustive list:-
    1. Integrated/ regional tourism centers/ attractions/ facilities and complexes.
    2. River and waterfront developments.
    3. Theme/recreation parks /centers.
    4. Accommodation with special theme-based developments.
    5. Marina and marine tourism.
    6. Supporting facilities such as:-
      1. Access roads
      2. Cable cars
      3. Jetties
      4. Airstrips