KUALA LUMPUR, Jan 18 (Bernama) — Ambank (M) Bhd and Credit Guarantee Corporation Malaysia Bhd (CGC) have signed a total of 10 tranches of portfolio guarantee (PG) worth RM2.15 billion since their strategic partnership in 2015.
Ambank Group Bhd chief executive officer Datuk Sulaiman Mohd Tahir said due to the success recorded through the PG collaboration as well as the bank’s focus on growing mid-tier corporations, small and medium enterprises (SMEs) and retail SMEs, the bank embarked on the PG worth RM100 million with CGC.
“That is why we penned a strategic collaboration with Proton Edar Sdn Bhd, and we saw opportunities for Proton dealers to upgrade their facilities to 3S (sales, services and spare parts) and 4S (including body and paint centres).
“We would like to kick off with RM100 million for the first tranche and distribute within six months, and we would look into the possibility of a second tranche, depending on the demand,” he told reporters after announcing the partnership with Proton in providing financing access via PG.
To date, there are 148 Proton dealers, of whom 101 have received approvals from Proton Edar to upgrade their facilities to 3S and 4S centres, with the remaining 47 able to leverage on the offered PG.
CGC president-cum-chief executive officer Datuk Mohd Zamree Mohd Ishak said from its past PG collaborations with Ambank, it has managed to double the amount of PG from the initial target of RM1 billion.
“We plan to do more and you see the PG that we did today, it is not only industry-specific but also brand-specific.
“So both Ambank and CGC are very delighted to work on this project and to play our role in assisting Proton to go to the next level,” he added.
The PG is a term loan facility ranging from RM1 million to RM3 million, with 70 per cent of the loan guaranteed by CGC and the guarantee fee absorbed by Ambank.
CGC is reportedly looking at approving RM4.6 billion worth of guarantees and financing, which would benefit 9,800 SMEs this year.
CGC is also targeting a 20 per cent growth in its business income to RM280 million in 2019, from its 2018 target of RM236 million, driven by guarantees, direct financing and asset securitisation deals.