Tawarruq Fixed Working Capital (TWF)

Islamic term financing facility offered to part finance working capital requirements including advances, operating and pre-operating expenditure, allowing you to better manage immediate debts and cash flow.

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Financing Facilities

Key Features

Facility Type 

Term Financing

Financing Purpose

To part finance the working capital or operating expenditure requirements

Eligible Applicant

  • A company, corporative or statutory body
  • Registered and incorporated in Malaysia
  • Majority ownership of 51% by Malaysian

Financing Amount / Limit

  • Minimum: RM20 million
  • Maximum: RM800 million, subject to Bank Pembangunan’s evaluation and credit assessments

Margin of Financing

Up to 85% of each progressive claim / invoice based on project cash flow requirements or up to 30% of total project cost

Financing Tenure

Up to 5 years

Financing Method 

Tawarruq is a Shariah-compliant financing method that provides upfront funds through real transactions. Learn more about Tawarruq here

Shariah Compliant Financing

Bank Pembangunan is guided by Shariah principles, supporting only economic activities permitted under Islamic guidelines. Shariah compliance is overseen by Bank Negara Malaysia’s Shariah Advisory Council, and we follow its rulings to ensure our offerings meet recognised standards with integrity

Profit Rate

Fixed / floating rate

Product Disclosure Sheet

Illustration of rebate (Ibra') calculation

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* The final approval on the financing granted is subject to the Bank’s credit assessments and discretion.

Business Enquiry

Business Enquiry (Programme / Financing)

Note:

Bank Pembangunan offers financing starting at RM20 million.

If your financing needs are below this amount, you may consider alternative options available here.

To learn more about import and export financing, click here.

Priority sectors we serve

Several key industries require extensive support as they are instrumental to the achievement of national goals and targets. We play our part by ensuring players within these industries the opportunities to excel and contribute to a progressive Malaysia.

Infrastructure

Infrastructure project financing focuses on seven target sectors. Loans generally come with extended gestation periods and a grace period of three to five years for borrowers.

Utilities

  • Power
  • Sewerage
  • Water

Transportation

  • Inland
  • Air

Development Area

  • Public / Commercial / Residential
  • Industrial

Tourism

  • Themed Tourism

  • Hotels / Resorts / Service Apartments / Villas

  • Convention / Business Centres

  • Marina

Roads / Highways

  • Toll Roads
  • Trunk Roads
  • Bridges
  • Federal Roads
  • City Roads

Ports

  • Inland
  • Warehouse / Logistic Hub
  • Sea

Community, Social & Public Services

  • Education
  • Flood Mitigation
  • Health (excluding Health Tourism)

Maritime

Maritime financing supports shipping, shipyards and maritime related activities to enhance local tonnage capabilities, improve operational efficiency of local ports and enhance other ancillary activities.

Vessels

  • Liquid Cargo Vessels
  • Dry Cargo Vessels
  • Specialised Vessels

Shipyards

  • Ship Building
  • Ship Repair
  • Engineering Works
  • Yard Facilities & Infrastructure

Marine-related

  • Fabrication
  • Maritime-related

Technology

Technology financing boosts the sector’s success in domestic and international markets by enabling the purchase of plant, machinery, equipment and construction of factories for technology-based activities.

Advanced Manufacturing

  • Chemical
  • Plastic
  • Pulp & Paper
  • Pharmaceutical
  • Electrical & Electronic
  • Instrumentation & Equipment
  • Food Processing
  • Textile
  • Iron & Steel
  • Aerospace
  • Advanced Material
  • Engineering & Support Service
  • Security Printing

Information & Communication Technology(ICT)

  • Telecommunication
  • System Integration
  • Communication

Environmental Conservation

  • Energy Efficiency
  • Biofuel
  • Clean Development Mechanism (CDM)
  • Renewable Energy
  • Waste to Wealth
  • Pollution Control

Biotechnology

  • Biotechnology

Oil & Gas

We support maritime players exploring the oil and gas industry, local vendors with specialised technology and contract financing for storage facilities and infrastructure, as well as working capital for local contractors and fabricators.

Offshore

  • Oil & Gas Field Operators
  • Platform Contractors
  • Offshore Structure Owners / Operators

Onshore

  • Fabricators
  • Tank Farm Owners / Operators
  • Terminal Owners / Operators

Offshore Support Vessels

  • Anchor Handling Tugs
  • Supply / Utility Vessels
  • Accommodation Work Barge
  • Crew Boats
  • Pipe Lay Barge / Vessels
  • Other vessels involved in Oil & Gas activities

Fees and Charges

Our fees and charges to Corporate, Small and Medium-Size Enterprise (SME) clients are in accordance with the guidelines issued by Bank Negara Malaysia (BNM).

They are subject to taxes, where applicable.

Processing Fee (Not applicable to SMEs)

Minimum of 0.25% of the facility amount, unless exempted / reduced / varied by Bank Pembangunan Approving Authority.

Note:

  1. The calculation of processing fee shall exclude the financing amount of profit during grace period (during moratorium or part payment of profit).
  2. Processing fee is exempted for cases where the fund provider has imposed that no processing fee is to be charged when utilising its fund.
  3. The earnest deposit shall not be imposed on Client.
  4. The mode of payment for the processing fee will be determined on a case-to-case basis.

Administrative Fee (Not applicable to SMEs)

Variation of Facility Terms and Conditions Minimum of RM10,000.00 per request
(charged upon approval)
Restructuring / Rescheduling of Facility Minimum of RM10,000.00 per request
(charged upon approval)
Cheque Returned RM100.00 per cheque returned

Note: The variation may include, but not limited to changes in specified machinery and equipment, reduction in facility amount, extension of period for execution of facility documents, extension of time for fulfillment of conditions precedent, extension of the availability period.

Facility Fee for Tawarruq Financing

Transaction Fee RM10.00 per RM1,000,000.00 or any other rate as charged by appointed commodity supplier.
Wakalah Fee (Principal Agent / Sub-Agent)

(only applicable Syndicated Financing or Club deals for non-SME)
 RM5,000.00 to be charged to Muwakkil (Principal).
For cases where Syndicated Bank or any other party that appoints Bank Pembangunan as either (i) an agent to purchase the commodity from commodity supplier and / or (ii) a sub-agent to sell the commodity to the commodity supplier.

Note: The quoted transaction fee to the Client shall be in absolute amount (based on the approved financing amount) and the remaining balance if any, after taking into account the actual disbursement made, is not refundable to the Client.

Letter of Credit (LC) / Letter of Credit-i (LC-i) Fee

Applicable for the issuance of LC by Bank Pembangunan’s banker on behalf of Bank Pembangunan’s Client:

Issuance of LC / LC-i 0.10% per month on the LC / LC-i amount or minimum of RM100.00
(to be paid in advance prior to issuance of LC / LC-i)
LC / LC-i Processing Fee RM100.00
(to be paid in advance prior to issuance of LC / LC-i)
Utilisation Fee (for FOREX line) RM100.00
(to be paid in advance prior to issuance of LC / LC-i)
LC / LC-i Amendments of Terms RM50.00 per request
Issuance of Shipping Guarantee

0.20% per month on the amount of Shipping Guarantee for the period of 3 months or a minimum of RM10.00.

An additional 0.10% per annum, if the Shipping Guarantee is not returned to the Bank after 3 months.
Other administration / incidental cost for LC / LC-i As charged by the Issuing Bank

Bank Guarantee / Bank Guarantee-i (Kafalah) Fee

  • 1.50 % per annum or 0.125% per month on the guaranteed amount for the guaranteed tenure (payable in advance), unless varied by Bank Pembangunan Approving Authority
  • There shall be no refund of the BG / BG-i Fees or any part thereof, in the event of an early termination or release or pre-mature return of any bank guarantee.
  • Late Payment Charges for Bank Guarantee / Bank Guarantee-i (upon full utilisation / pay-out by Bank Pembangunan)
    1. Compensation/ Ta’widh – at the prevailing daily overnight of Islamic Interbank Money Market (IIMM) rate or other rate that Bank Negara Malaysia may specify against the defaulted sum in the event that defaulted sum being paid after grace period of one (1) day from the date of payment by Bank Pembangunan; and
    2. Penalty/Gharamah at the rate of zero per cent (0%)

Letter of Support (Not applicable to SMEs)

RM500.00 per issuance

Late Payment Charges

Late Payment Charges/ Compensation Charge (Ta’widh) for financing except for BG / BG-i (Kafalah)

1.00% per annum on the overdue instalment during the tenure of the facility;and/or

1.00% per annum or at the prevailing daily overnight of Islamic Interbank Money Market (IIMM) Rates whichever is lower or other rate that Bank Negara Malaysia may specify against the outstanding selling price (subject to Ibra’ if applicable) if the overdue payment continues beyond the maturity date of the facility.
Late Payment Charges / Compensation Charge (Ta’widh) for BG / BG-i (Kafalah) At the prevailing daily overnight of Islamic Interbank Money Market (IIMM) rate or other rate that Bank Negara Malaysia may specify against the defaulted sum, in the event that the defaulted sum being paid after grace period of one (1) day from the date of payment by Bank Pembangunan.
Compensation Charge (Ta’widh) on Advance Payment 1.00% per annum or other rate that Bank Negara Malaysia may specify against the amount due, commencing from the next day after 1 day of grace period (T+1) until full payment of such amount is made.
Penalty (Gharamah) 0.00% per annum

Advance Payment Fee

  • Fee for payment made in advance for third party fees such as Legal Fees, Independent Checking Engineer Fees, Takaful / Insurance Contribution / Premium, Letter of Credit Fee to Issuer Bank, Quit Rent and other fees.
  • Compensation charge will be imposed for any late payment of “advance payment fee” amount. Further details to refer to Section “Late Payment Charges”

Fees for Capital Market Activities, Syndicated Financing or Club Deals (Not applicable to SMEs)

Project Agent Fee Up to RM70,000.00 per annum
Facility Agent Fee Up to RM70,000.00 per annum.
Security Agent Fee Up to RM70,000.00 per annum
Participation Fee Based on the amount quoted by Facility Agent.
Principal Advisor / Lead Arrange Fee Denominated by a certain percentage* of the amount of the PDS issuance
(To be paid on milestone or success basis)
Underwriting Fee Calculated based on a certain percentage* of the amount underwritten
Bought-Deal Fee Calculated based on a certain percentage* of the total issue size

* Note:

  1. The fees are subject to negotiations of the relevant parties.
  2. All fees are subject to taxes, where applicable

Stamp Duty

As per the Stamp Duty Act 1949 (Revised 1989)

Legal Fee

As per Solicitor’s Remuneration Order including fees for registration of charge, land search, bankruptcy search, taxes and other charges as per the scale fees charged by the Solicitors (where applicable)

Other Fees / Ujrah

The following fees / Ujrah will not be imposed to clients:

  1. Prepayment Fee
  2. Account Statement Fee
  3. Audit Confirmation Fee
  4. Account Statement Fee for Redemption (Redemption Fee)
  5. Disbursement Fee for Murabahah / Dayn
  6. Collection Fee Murabahah / Dayn
  7. Yearly Review Fee
  8. Referral Fee
  9. Confirm Purchase Order (CPO) Fee
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Frequently Asked Questions

Is Islamic banking only for Muslims?

No. Islamic banking is open to everyone. If you meet the eligibility requirements, you can benefit from Shariah – compliant financial services that are ethical, asset-backed, and socially responsible.

What is Shariah and how does it relate to Islamic banking?

Shariah refers to Islamic laws and principles that guide all aspects of life, including finance. Islamic banking follows these principles and avoids activities that are prohibited, such as interest (riba), alcohol, pork, gambling, and unethical entertainment.

What are the main modes of Islamic financing used at Bank Pembangunan?

  • Tawarruq: Asset-based financing using two sale and purchase contracts to generate liquidity
  • Murabahah: Cost-plus sale where the price and profit margin are disclosed upfront
  • Mudharabah: Profit-sharing arrangement between a capital provider and an entrepreneur
  • Wakalah: Appointment of an agent to carry out a permitted task

How does Bank Pembangunan ensure its products are Shariah-compliant?

All products are reviewed and approved by a dedicated Shariah Committee made up of independent scholars with deep expertise in Islamic finance. This ensures full compliance with Shariah principles at all times.

Learn more about the Shariah Committee.

How does Bank Pembangunan manage risks and defaults in Islamic finance?

  • Kafalah: A third-party guarantee
  • Ta’widh: Compensation for actual losses due to delayed payments
  • Gharamah: Penalty for late payments, directed to charity
  • These tools are used in line with Shariah principles to promote fairness, transparency, and accountability.

Does Bank Pembangunan pay Zakat?

Yes, we pay Zakat on our business to the authorised Zakat authority, in line with Shariah requirements.