Oil & Gas Terms & Conditions

The Financing


1 Purpose of financing

Financing to offshore, onshore and offshore support vessels & logistics companies.

2 Margin of financing

(i) Acquisition of Asset:


I. Vessel/air transport services

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

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

II. Machinery/equipment

  • Maximum 90% of purchase price

(ii) Working Capital:

  • 85% of each contract value/invoices

3 Tenure of Loan

  • Vessel/air transport services

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).

  • Machinery/equipment

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 20.0 million

  • Maximum : Up to Single Customer Limit (SCL)

Eligibility Criteria

  • The applicant must be registered and incorporated in Malaysia.

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