Contract Financing

Contract Financing Scheme is a financing package based on product bundling concept of financing facilities which are already available in the bank. The Scheme offers financing to customers who are Main Contractors or Nominated Sub-Contractors having secured contract from approved awarding parties mainly government ministries, department and agencies.

Mechanics of Financing

Providing loan facilities to fund the implementation of contract(s) until full completion. The funding mechanism works by assigning the contract payments to the awarded parties direct from the Bank. Financing is offered on a pre-implementation or post-completion basis, or a combination of both.

Types of Contract

• Supply direct supply contract or contract with added value in the form of installation, testing, commissioning, training, etc.

• Construction and infrastructure projects including works in civil, mechanical, electrical and information & communication technology.

• Other business services contract such as providing services and maintenance.

Financing Concept

• Pre-implementation financing

Normally comprising of guarantees as provided for and required for the contract, as well as working capital financing to facilitate the completion of the contract.

• Post-completion financing

Based on invoices already submitted to awarding parties or progress claims duly certified by the awarding parties.

undo Other Banking Products