TNB Vendor Financing Program

A financing program designed exclusively for qualified contractors who are registered with Tenaga Nasional Berhad (TNB) and have secured either a contract or an official Purchase Order (PO) from TNB.

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Eligibility

Targeted solely to customer that fulfill the following criteria as below:
  • Private Limited Companies (Sdn. Bhd.), Sole-Proprietorships and Partnerships, and must fall within Small and Medium Enterprise (SME) definition
  • Customers must have an average turnover over the past three (3) financial years as follows:
    • Sdn. Bhd.: Above RM2.0 million
    • Sole-Proprietorship, Partnership: RM1.0 million
  • Malaysian owned business with at least 51% of shares held by a Malaysian who serve as the key decision maker
  • Licensed and registered vendors to TNB and/or its subsidiaries
  • Minimum three (3) years’ track record with TNB
  • Type of contract: Supply of goods and services related against Purchase Order (PO)
  • Contract awarder: TNB and/or its subsidiaries only

Purpose of Financing

For Working Capital Requirements (WCR)

Financing Amount

  • Sdn Bhd
    • Maximum financing amount: RM5.0 million.

  • Sole proprietorship/Partnership
    • Maximum financing amount: RM1.0 million.

Financing Rate

Attractive financing rates

Financing Tenure

One (1)-year subject to annual review

Margin Of Financing

  • Supply Contract: Up to 80% per Purchase Order (PO).
  • Construction Contract: 30% of contract.

Collateral / Security

  • Assignment of contract proceeds between Bank Islam and customer
  • Irrevocable Letter of Undertaking from contractors to TNB to credit the contract proceeds into their Non-Checking Current Account (NCCA) maintained with the Bank.

Sdn. Bhd.:

  • Joint and Several Guarantee (JSG) by the following individuals:
    • Directors of the company
    • Shareholders holding more than thirty percent (30%) of the share capital.
    • Key man / person regardless of the shareholding and directorship.
  • Corporate Guarantor holding more than fifty percent (50%) of the share capital of the customer.

Partnership:

  • Letter of indemnity or undertaking, whichever applicable.

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 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.

Type of Contract

  • Supply of Goods and Services against Purchase Order (PO).
  • Contract awarder: Tenaga Nasional Berhad (TNB) and/or its subsidiaries.
Product Disclosure Sheet:
  • Click here to view Product Disclosure Sheet TNB Vendor Program-i (Tawarruq) – English Version
  • Click here to view Product Disclosure Sheet TNB Vendor Program-i (Tawarruq) – Bahasa Malaysia Version

For enquiries email to: sme-assist@bankislam.com.my

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