SME SMART Eco Financing Program-i (ECO)

SME Smart Eco Financing (ECO) is a structured financing programme designed to support better environmental outcomes. It offers a range of facilities aimed at promoting the development of green projects and reducing the environmental impact of conventional projects or a combination of both.

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Eligibility

Malaysian SMEs that fulfil the following criteria:

  • Private limited company (Sdn Bhd) and must fall within SME definition.
  • Registered with the relevant Licensing or Certification Bodies
  • Malaysians that holds a minimum of 51% shareholding / ownership in the business.

Target Customer

Companies producing promoted products/ engaged in promoted activities in the following priority sectors:

User:

  • Company that are benefiting from the production of green products and utilizing green technologies.

Producer:

  • Energy: Supply & Utilization
  • Building & Township: Energy & Water Efficiency, Renewable Energy Sources, Materials & Resources, Indoor Environment Quality
  • Transport: Green Infrastructure, Green Fuel Production, Energy Efficient Vehicles, Electric & Hybrid Vehicles (Taxis, Buses, Prime Movers, Lorries, Motorcycles, Bicycles)
  • Waste: Recycling, Waste-To-Fertilizer, Waste Reduction, Wastewater Treatment.
  • Green Manufacturing: Utilization of Green Energy, Developing Green Products, Implementing Green processes within manufacturing activities.

Benefits

The program will benefit companies that are the producers and users of green technology by making it easier for them to buy their business inventory, equipment, or services it requires relating to sustainable initiative, sustainable practices and to enjoy Tax Relief and Discount under Green Initiative

Purpose of Financing

Capital Expenditure (CAPEX) :

  • To finance investment for the production of green products
  • To finance investment for the utilization of green technology

Working Capital Requirement (WCR) :

  • For the purchase of raw materials. Any substance or material used in the production or manufacturing of goods relating to green activities/or supporting ESG in spirit is considered a raw material.
  • ESG Certification and Training costs.

Financing Amount

  • Min: RM100,000
  • Max − User: RM5.0 mil
  • Max − Producer: RM15.0 mil

Margin of Financing

  • Working Capital Requirements (WCR): 100%
  • Capital Expenditure (CAPEX) − From Supplier/Vendor Invoices: 90%

Financing Tenure

  • Business Financing-i (BF-i) – Up to nine (9) years
  • Business Cash Line-i (BCL-i) – one (1) year subject to annual review
  • Multi Trade Facility-i – As per the respective trade products
  • Foreign Exchange Contract-i (FEC-i) – Max up to (6) months / one (1) year

Note: (Subject to credit approval granted by the Bank)

Collateral / Security

SJPP Guarantee:

Up to 80% Guarantee Coverage by Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), with a guaranteed fee of up to 1% p. a. subject to schemes offered:

  • WCGS
  • WCGS – Bumi
  • GGSM3
  • Or any other schemes released in the future

For Private Limited Company:

  • Joint and several guarantee (JSG) by the following individual:

    • – Directors of the company
    – Shareholders holding more than thirty percent (30%) of the share capital
    – Key man/person regardless of the shareholdings and directorship

  • Corporate Guarantor holding more than 50% of the share capital of the customer

Fees & Charges

No.

Fee Type

Charges
1 Stamp Duty Actual Cost – As per Stamp Duty Act 1949 (Revised 1989):

  1. Principal Agreement – Ad Valorem of 0.5% of financing amount
  2. Secondary / Supplementary Agreement – Nominal of RM10 of each document
2 Legal Fees Actual Cost
3 Processing Fee Waived
4 Tawarruq Agency Fee RM50 (RM25 of each ABPA and ABSA)



Note: Tawarruq Agency fee costs RM50.00 for every Tawarruq transaction.
5 Late Payment Charges Late payment charges (LPC) are as per BNM’s latest Guidelines on Late Payment Charges for Islamic Banking Institutions as well as Bank Islam Ta’widh clause.
6 Guarantee Fee The Guarantee Fee is up to 1.00% per annum of the coverage amount, depending on the scheme offered by SJPP and subject to 8% Sales and Service Tax (SST). The Bank will finance only the first year of the SJPP Guarantee Fee. For subsequent years, the Guarantee Fee will be debited from the customer’s account with Bank Islam
7 Cancellation Fee Based on actual cost (if any) for the preparation and registration of security documents that has been incurred by the Bank in connection with the facility including all expenses incurred during the claim process.
Product Disclosure Sheet:
  • Click here to view Product Disclosure Sheet – English Version
  • Click here to view Product Disclosure Sheet – Bahasa Malaysia Version

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