Exim Bank hopes to disburse RM1.5b

Source From (Busines Times): http://www.btimes.com.my/Current_News/BTIMES/articles/adixim/Article/

Published: 15 May 2012

EXPORT-Import Bank of Malaysia Bhd (Exim Bank) is confident of disbursing RM1.5 billion loans this year due to encouraging demand for financing facilities from Malaysian companies venturing abroad.

The bank has already disbursed RM800 million loans in the first four months this year, managing director and chief executive officer Datuk Adissadikin Ali said.

Last year, the bank disbursed RM1.2 billion loans, which surpassed the targeted RM1 billion.

"So, business has been quite good. There are a lot of Malaysian companies that are going abroad," he told reporters after the signing of a US$90 million (RM277 million) financing facility between Malakoff Corp Bhd, Exim Bank and Mizuho Corporate Bank, here yesterday.

The financing facilities are for Malakoff's purchase of a 40 per cent stake in Bahrain's largest independent power generation and water desalination plant, Hidd Power Company, through the acquisition of IP Middle East Holding Company from International Power Holdings Ltd.

Most of the loans went to the construction sector and infrastructure projects.

"Many construction, power and water companies are going out of Malaysia as projects are quite limited here.

"So when they go out, they bid for big projects and, thus, there will be big loans involved like this one signed today, which has a single exposure of US$90 million," Adissadikin said.

He said Exim Bank will continue to team up with foreign banks or domestic banks that have operations overseas to provide financing facilities to Malaysian companies going abroad.

On financing for the Malaysia Kitchen Programme, Adissadikin said the response towards the programme has been good, with more than 10 applications approved by Exim Bank so far this year.

Under the programme, the government has allocated a RM180 million fund, which is managed by Exim Bank. The fund is to assist Malaysian entrepreneurs to set up or expand existing Malaysian restaurants overseas.

"In terms of value, it's very rare that the application surpasses RM1 million for one restaurant. This includes for the operation as well. We usually don't give out too big amounts," he said.

He added that the bank has received many applications to set up or expand Malaysian restaurants in China, Britain, Australia and India.