We understand your varied needs, in ensuring they are met, our shariah compliant products and services for investment banking, asset management, development finance and mezzanine financing will transform your business and operational strategies from within while keeping abreast with trends and changes in the business ecosystem.

Investment Banking
Islamic Deposit: Commodity Murabahah Deposit-i
This Islamic deposit product provides customers with a certainty of return i.e. fixed profit that is undertaken based on a pre-agreed profit margin or marked-up price. The fixed profit rate is derived from the sale and purchase of Shariah-compliant commodities as its underlying transactions based on the shariah concept of Murabahah via the Tawarruq arrangement.

Product Disclosure Sheet

Terms and Conditions

Account Opening Application Form
Money Market Instruments

Malaysian Treasury Bills-i (MTB-i)

A short-term Islamic instrument issued by the Malaysian Government with maturities not exceeding one year. The issuance of MTB-i is currently based on the principle of Murabahah. In the primary issue, submission of tenders for MTB-i is conducted through the Islamic banks and Principal Dealers. The tender is based on the exact purchase price (proceeds) basis. MTB-i is traded based on the principle of Bai’Dayn. The secondary market trading of MTB-i is quoted in terms of discount rate. The formula and computation of proceeds is based on the discounted formula similar to the BNMN-i.

 

Bank Negara Monetary Notes-i (BNMN-i)

BNMN-i is issued by BNM for the purpose of managing liquidity in the Islamic banking system and is currently issued under the principle of Murabahah. The tenors of these issuances range from three months to three years. BNMN-i may be issued either on a discounted basis or profit-based basis, depending on the demand of investors.


Negotiable Debt Certificate-i

This refers to a sum of money deposited with the Islamic banks or SPI banks and is repayable to the bearer on a specified future date at the nominal value of the NDC-i. This instrument is structured along the Islamic concept of Bai’Bithaman Ajil (“Deferred Payment Sale”) and Tawarruq.

Bank Negara Malaysia Qard Placement

BNM Qard Placement is a transaction between BNM and the Islamic banking institutions (“IBI”) whereby it refers to the mechanism when the IBI place their surplus funds with BNM based on the concept of Qard (loan). Technically, Qard is defined as the act of paying money to another counterparty (debtor) where the debtor is expected to repay only the principal amount borrowed (the debtor may, however, pay an extra amount beyond the original principal amount as a token of appreciation i.e. Hibah).

Interbank Commodity Murabahah Programme-i

The Interbank CMP-i refers to a mechanism whereby a deficit Islamic banking institution can obtain funds from a surplus Islamic banking institution based on the shariah concept of Murabahah via the Tawarruq arrangement.

Accepted Bill-i (AB-i)

The AB-i was previously known as Islamic Accepted Bills (IAB). It is a bill of exchange drawn on and accepted by a bank to finance a sale or purchase of goods and commodities. It is formulated on the principle of Murabahah and traded in the secondary market, based on Bai’ Dayn. The main objective of the AB-i is to encourage and promote both domestic and foreign trade, by providing Malaysian traders with an attractive Islamic financing product.

Commercial Paper-i (CP-i)

CP-i is essentially money market debt instruments, which is issued by corporate bodies in accordance to the shariah principle. The CP-i is rated by either RAM or MARC and traded on discount basis. The tenor ranges from 1 month to 1 year.  

Capital Market Instruments

Government Investment Issues-i

o  GII-i is issued by the government of Malaysia to finance the country's development programme. GII-i is a long-term non-interest-bearing Government securities based on Islamic principles for funding developmental expenditure. Effective from 22 July 2013, GII-i is issued based on Murabahah concept. Prior to 22 July 2013, the GII was issued based on Bai’ Inah contract.
o  In the primary issue, the submission of tender will be on price/100 basis and is conducted through the Islamic banks and Principal Dealers with Islamic operations. GII-i is assigned with no credit risk as it is issued by the government.
o  On 16 March 2005, the Government of Malaysia, with the advice of BNM, issued the first Profit-Based GII-i 5-year tenure of RM2 billion. The profit-based GII-i is issued at par via the principle of Bai' Bithaman Ajil, and is coupon-bearing, and payable semi-annually.

Sukuk Bank Negara Malaysia Ijarah (SBNMI)

o  This Sukuk is based on the Ijarah (sale and lease back) concept, a structure that is widely used in the Middle East. The inaugural issuance took place on 16 February 2006 with an issue size of RM400 million. A special purpose vehicle, BNM Sukuk Berhad has been established to issue the Sukuk Ijarah.
o  The proceeds from the issuance will be used to purchase the assets of BNM. The assets will then be leased to BNM for rental payment consideration, which is distributed to investors as a return on a semi-annual basis. Upon maturity of the Sukuk Ijarah, which will coincide with the end of the lease tenure, BNM Sukuk Berhad will then sell the assets back to BNM at a pre-determined price. BNM issues this instrument on a regular basis, with issues ranging from RM100 million to RM200 million.

Sukuk

o In July 2016, BNM issued a notification advising a change of terminology form Private Debt Securities to either Corporate Bonds (Conventional) or Sukuk (Islamic)). The literal meaning of Sukuk is certificate (that represents the value of an asset).

o Sukuk are essentially capital market debt instruments, which are issued by corporate bodies in accordance with the Shariah principle. The Sukuk are rated either by RAM or MARC, and may be on a stand-alone basis or enhanced by government guaranteed or bank guaranteed arrangement.  

o Sukuk are usually structured under the principles of Murabahah , Ijarah Musyarakah and Mudarabah; and traded on yield or price/100 basis in the market.
Debt Capital Markets
Our Islamic debt financing facilities, through Issuance, Term Notes Facility and Notes, provide corporations with the option of raising capital in accordance with Shariah law, thus having the additional benefit of widening their investors base too.
Corporate Advisory & Structuring

Islamic Term Facility (TF-i)

TF-i is a credit facility granted to part-finance fund raising for Investment Banking Transactions and/ or Capital Market Transactions.

Islamic Bridging Facility (BF-i)

BF-i is a credit facility granted for a specific tenure to bridge the Customer’s short-term funding gap. The BF-i are usually used for bridging of investment banking transactions and/ or pending completion of capital raising from the Islamic capital markets, either debt or equity (Capital Market Transactions).

Kafalah Facility (BG-i)

We offer a Bank Guarantee facility on behalf of the customer whereby a contract is made between the Bank and the customer to discharge the liability of a third party in the case of default by customer.

SME Financing (Development Finance)
Al-Ijarah Thumma Al-Bai
Our Al-Ijarah Thumma Al-Bai (AITAB) facility is a type of lease contract, which concludes with the purchase of the asset, in which the legal title of the leased asset will be passed to the Hirer at the end or at the completion of the rental period.
Bai Bithaman Ajil

Our Bai’ Bithaman Ajil (BBA) Contract is a sale and purchase transaction for the financing of an asset on a deferred payment basis with a pre-agreed payment period.

The sale price will include profit, whilst asset comprises of Land & Building, Machinery, and Equipment.
Ijarah Facilities
Our Ijarah facility is a type of operating lease whereby the Lessee has the right to utilise the asset within a specific period as agreed to in the contract.
Murabahah Working Capital
Our Murabahah facility is used to facilitate short-term trade transactions under which we finance an end user's requirements.
Bai Al-Dayn Factoring facilities
Bai’ Dayn Factoring facilities involves the sale and purchase of debts, which is a principle that is acceptable by Shariah. Factoring is a type of financial instrument which enables an organization to draw funds by liquidating their account receivable or book debts.
Islamic Purchase Revolving Credit (PRC-i)
This facility is financing product which facilitates the Customer’s purchase of raw materials, goods, parts, products and services which are supplied by its Supplier.
Islamic Sales Revolving Credit (SRC-i)
This facility is a financing product for the Customer’s additional working capital requirements in relation to the sale and/or supply or provision of goods and/or parts, product or services, described in the invoice(s) issued by the Customer to its Buyer.
Islamic Term Financing (TF-i)
This facility is a financing product which facilitates the Customer’s business needs, where the purpose of financing is Shariah-compliant and subject to the guidelines stated under the various funds provided by external parties.
Asset Management
MIDF Amanah Islamic Fund
This Fund aims to provide potentially higher returns through investments in emerging companies offering high growth potential, whilst conforming to Shariah principles.

The Fund is ideal for those willing to take higher level of risks for their long-term capital appreciation, as the investment strategy focuses on employing the optimal combination of Shariah-based asset, asset allocation and Shariah-compliant securities at any point of time.
MIDF Amanah Shariah Money Market Fund
This mutual fund aims to provide investors with a regular income stream over the short to medium period by investing in Islamic money market instruments and other short-term Islamic debt instruments. This Fund complies with Shariah requirements and maintains capital stability, and is suitable for investors seeking regular income with capital stability; has low risk tolerance. The Fund will invest at least 90% of its NAV in Shariah-based deposits, Islamic money market instruments or Islamic short-term debt instruments, all of which have a remaining maturity period of not more than 365 days. Up to 10% of the Fund's NAV will be invested in Islamic short-term debt instruments which have a remaining maturity period of more than 365 days but less than 732 days.
MIDF Amanah Shariah Income Fund
This Fund is an Islamic money market wholesale fund issued that aims to provide income for investors through investments in sukuk issued or guaranteed by the government of Malaysia and Islamic money market instruments, all of which have remaining maturity of less than a year. This is neither a capital protected not capital guaranteed fund.

The Fund may place Islamic Deposits and/or invest in Islamic money market instruments wholly with a single financial institution.
MIDF Amanah Shariah Cash Fund
As an Islamic money market wholesale funnd, it aims to provide regular income* stream for investors through investments in Islamic Deposits, that will be reinvested into additional Units unless Unit Holders opt for the distribution to be paid out. This is neither a capital protected nor capital guaranteed fund.

The Fund aims to invest in Islamic Deposits with a maturity period of less than a year. The Fund may place Islamic Deposits wholly with a single financial institution and/or exempt finance company.

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