SME SMART Eco Financing Program-i (ECO)
SME Smart Eco Financing (ECO) is a structured financing program that has been developed to achieve a better environmental outcome. It contains a variety of facilities which is intended to promote the development of green projects or minimize the regular projects impact on the climate or combination of both.
Malaysian SMEs that fulfil the following criteria:
- Registered with the relevant Licensing or Certification Bodies
- Shareholdingby Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.
- Malaysians residing in Malaysia that hold a minimum of 51% shareholding in the business.
Companies producing promoted products/ engaged in promoted activities in the following priority sectors:
- Company that are benefiting from the production of green products and utilization of green technology.
- Energy (Energy Supply Sector and Energy Utilization Sector)
- Building & Township (Energy Efficiency & Renewable Energy, Materials & Resources, Indoor Environmental Quality and Water Efficiency
- Transport (Infrastructure (Green infrastructure), Green Fuel (Green fuel production), and Vehicle (Alternative Fuel, Energy Efficient Vehicle, including Electric Vehicle and Hybrid (i.e. Taxi, bus, prime movers, lorry, motorcycle, bicycle, ect)
- Waste (Waste recycling, Waste to fertilizer, Waste reduction and Wastewater treatment)
- Manufacturing (Green Manufacturing) – (Utilization of green energy; Developing and production of green products; and Deployment of green processes in manufacturing activity)
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) :
- The program is also available for the financing of working capital for the purchase of raw materials (for the production of green products)
- Up to RM 5 mil (for User)
- Up to RM 15 mil (for Producer)
Note: Sole-Prop/ Partnership financing limit is capped at RM 2.5 million only.
Margin of Financing
- Working Capital – 100%
- Capital Expenditure – Up to 90%
- Business Financing-i (BF-i) – Up to 9 years
- Business Cash Line-i (BCL-i) – 1 year subject to annual review
- Multi Trade Facility-i – As per the respective trade products
(Subject to credit approval granted by the Bank)
Up to 80% Guarantee Coverage by Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), with a guarantee fee of up to 1% p.a
For Private Limited Company:
- Joint and several guarantee (JSG) of Directors;
- Corporate Guarantor holding more than fifty percent (50%) of the share capital of the Customer; and
- Key man/person regardless of the shareholdings of the Customer
Product Disclosure Sheet:
Click here for Product Disclosure Sheet – ENG Version
Click here for Product Disclosure Sheet – BM Version