Maritime Terms & Conditions

The Financing

 

1 Purpose of financing
  • Shipping : Financing to a ship owner for the construction of newly built vessel, or purchase of secondhand vessel.

  • Shipyard : Financing to a shipyard for the capital expenditure program, working capital requirement for ship building, ship repair works and guarantee / performance bond facilities.

  • Maritime Related Activities : Financing to a maritime-related company such as contract financing for fabrication & engineering works for the offshore oil & gas sector.
 

2 Margin of financing

I. Shipping:

 
  • Maximum 90% of purchase price / construction (New).

  • Maximum 80% of purchase price / market value (secondhand), whichever is lower.
 

II. Shipyard:

 
  • Maximum 85% of project cost
 

III. Maritime Related Activities:

 
  • Maximum 85% of project cost
 

3 Tenure of Loan
  • Shipping : Maximum loan period up to 18 years, inclusive of 3 years grace period (For second hand vessels, their age should not exceed 20 years at the end of repayment period).

  • Shipyard : Maximum loan period up to 15 years, inclusive of 3 years grace period.

  • Maritime Related Activities : Maximum loan period up to 15 years, including of 3 years grace period.

4 Interest rate

Base Lending Rate (BLR) + Maximum 2.7%

5 Security

The types of security acceptable to the Bank shall include, but are not limited to the following:

 
  • Mortgage and Debenture on the Vessel/Asset.

  • Assignment of insurance policies.

  • Directors/Corporate/Shareholder guarantee.

  • Assignment of Charter proceeds/contract payments.

  • Assignment of shipbuilding contract.

  • Debenture on fixed and/or floating assets.

  • Fixed legal charge over other assets of the customer.

  • Kafalah/Bank Guarantee.
 

Financing Amount

 
  • Minimum : RM 1.0 million (Shipping & Shipyard)

                     : RM 0.5 million (Marine Related)

 
  • Maximum : Up to Single Customer Limit (SCL)
 

Eligibility Criteria

 
  • The applicant must be majority-owned by Malaysians (at least 51%).

  • For vessel financing, the vessel has to be registered in Malaysia.

  • For secondhand vessel,the age and repayment period should not exceed 20 years.