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.
Product Disclosure Sheet
Terms and Conditions
Account Opening Application Form
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.
Government Investment Issues-i
Sukuk Bank Negara Malaysia Ijarah (SBNMI)
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.
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.
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. We offer the following Islamic Facilities and Services:-
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).
Islamic Bank Guaranty/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.
Corporate Finance Services
Every decision made in a business has financial implications, and any decision that involves the use of money is a corporate financial decision. We are dedicated to help companies and stockholders make plans to enhance their value and meet corporate finance objectives. Our team of professionals includes investment bankers, corporate finance specialists and financial analysts with experience helping organizations in a wide range of industries.
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.
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.
The Fund may place Islamic Deposits and/or invest in Islamic money market instruments wholly with a single financial institution.
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.