KUALA LUMPUR: AmBank (M) Bhd and Credit Guarantee Corporation Malaysia Bhd (CGC) have launched a RM30 million shariah-compliant financing for start-ups and an additional RM500 million Portfolio Guarantee tranche to support the development of small and medium enterprises (SMEs).
Ambank group CEO Sulaiman Mohd Tahir said CGC would guarantee 70% of the financing called SME Biz Start Up-i which offers financing of between RM30,000 and RM300,000 to qualified SMEs.
Meanwhile, the Portfolio Guarantee tranche, with financing ranging from RM100,000 to RM1 million, is extended to SMEs with three years’ track record.
He said for AmBank, SME Biz Start Up-i is the first financing package offered to start-ups.
“We find that SMEs with more than three years of track record have (better) access to financing, but those below three years have difficulty in terms of ability to raise funding,” he told a press conference after the launch of the Portfolio Guarantee tranche here today.
Sulaiman said AmBank aims to support SMEs from cradle to the initial public offering (IPO).
Meanwhile, CGC’s CEO Mohd Zamree Mohd Ishak said the 2018’s RM500 million Portfolio Guarantee tranche introduced via AmBank was almost fully subscribed, benefitting more than 600 SMEs.
“We expect the same performance for the additional RM500 million Portfolio Guarantee tranche launched today, if not better,” Zamree said.
He said for 2019, CGC targets to guarantee RM4.6 billion in financing.
Over the last four years, AmBank and CGC have launched 15 Portfolio Guarantee tranches totalling RM2.88 billion to 2,700 SMEs.