maximising your financing opportunities with cgc · •incorporated on 5 july 1972. • authorized...

Maximizing Your Financing Opportunities with CGC

HELPING YOUR BUSINESS GROW

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About CGC

• Incorporated on 5 July 1972.

• Authorized share capital is RM3.0 billion.

BNM is our major shareholder

TOTAL

FINANCIAL INSTITUTIONS

BANK NEGARA MALAYSIA 76.42%

23.58%

100.00%

CGC Profile

SMEs with:

• Develop & manage guarantee

schemes

• Bridge FIs & SMEs via a guarantee

mechanism

How?

• No collateral

• Insufficient collateral

• Do not have any track record

CGC’s main objective is to assist SMEs to obtain credit facilities from financial institutions

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SME complying to the following definitions:

(i) Based on Number of Full-Time Employees

Sector

Size

Primary

Agriculture

Service Sector & Mining &

Quarrying &

Constructions

Manufacturing &

MRS

MicroLess than 5

employees

Less than 5

employees

Less than 5

employees

Small Between 5 & 19

employees

Between 5 & 19

employees

Between 5 & 50

employees

Medium Between 20 & 50

employees

Between 5 & 19

employees

Between 51 & 150

employees

SME Definition

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(ii) Based on Annual Sales Turnover

Sector

Size

Primary Agriculture

Service Sector & Mining &

Quarrying & Constructions

Manufacturing &

MRS

MicroLess than

RM200,000

Less than

RM200,000

Less than

RM200,000

Small

Between

RM200,000 & less

than RM1 million

Between

RM200,000 & less

than RM1 million

Between

RM250,000 & less

than RM10 million

Medium

Between RM1

million & RM5

million

Between RM1

million & RM5

million

Between RM10

million & RM25

million

SME Definition (cont..)

CGC Performance

CGC has guarantee more than 7,117loans worth RM2.220billion

Cumulatively, CGC has benefited more than 409,000 loans worth RM47 billion since its establishment in 1972

As at 31st December 2010

For Financial Year 2010

MODUS OPERANDI

1. Loan Application

Fund & Monitoring

LENDING INSTITUTIONS

Report

MonitoringReport

1. Loan Application

4. Loan Disbursement

2. Guarantee Application

3. Guarantee Issuance

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Network

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Prai 25/06/2001

Main Branch

3/07/2000

Alor Star

28/08/2000

Ipoh

9/10/2000

Kuala Lumpur

3/11/2003

Seremban

23/07/2001

Melaka

21/04/2001

Johor Bahru

6/11/2000

Batu Pahat 3/11/2003

Kuantan

28/05/2001

Kuala Terengganu

26/11/2001

Kota Bharu

18/06/2001

CGC works closely with FIs and their branches (estimated at 3000 nationwide)

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Kuching

21/01/2002

Miri

24/02/2004

Kota Kinabalu

21/01/2002

Sandakan

19/01/2004

CGC works closely with FIs and their

branches (estimated at 3,000 nationwide)

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Guarantee Schemes

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Loan Applications

via CGC

Direct Access Guarantee Scheme

(DAGS)

Direct Access Guarantee Scheme

Islamic (DAGS-i)

GUARANTEE SCHEMES

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Direct Access Guarantee Scheme(DAGS)

&Direct Access Guarantee Scheme Islamic

(DAGS-i)

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DIRECT ACCESS GUARANTEE SCHEME (DAGS)

ObjectiveDirect Access Guarantee Scheme shall provide

direct access to financing whereby the SME/SMIs

could approach CGC directly in obtaining

guarantee and subsequently the required

financing

ObjectiveTo allow SMEs requiring Islamic Financing to

approach CGC directly to obtain its guarantee &

secure the required financing.

DIRECT ACCESS GUARANTEE SCHEME ISLAMIC (DAGS-i)

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Eligibility Criteria

� In line with the new SME definitions � Malaysian owned and controlled companies � Viable business � No adverse record with CGC or any other Financial Institutions

Credit Limit - RM50,000 to RM3.0 mil* per customer

Maximum Tenure - Up to 3 years (for loans to acquire assets,the tenure is up to 8 years).

- Up to 15 years (applicable for Term Loanfinancing for the purchase of completedcommercial properties or factories).

Annual Lending - Up to the Base Lending Rate (BLR)/ Base Rate Financing Rate (BFR) of the participating

Financial Institutions* Subject to terms & conditions

Direct Access Guarantee Scheme Islamic (DAGS-i)

Direct Access Guarantee Scheme (DAGS) &


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Guarantee Fee

Secured : 0.50% to 3.60% p.a of guarantee coverUnsecured : 0.75% to 5.75% p.a of guarantee cover

Guarantee Cover - 30% to 100% CGC Guarantee

Processing Fee - RM300.00 for successful applicationonly

Renewal Fee - RM150.00 for yearly renewal fee

Types of Facilities

�Term Loan/Term Financing-i�Overdraft/Overdraft-i�Tradelines/Tradelines-i�Any other credit facilities determined from time to time by the

Corporation


Direct Access Guarantee Scheme (DAGS) &


GUARANTEE SCHEMES

Loan Applications via Financial Institutions

ENHANCER / ENHANCER-i Scheme

Flexi Guarantee Scheme (FGS)

ENHANCER Express (new)

Green Technology Financing Scheme (GTFS)

Small Biz Express & Small Biz Express-Islamic

Franchise Financing Scheme

Green Technology Financing

Scheme

(GTFS Producer & GTFS User)

Green Technology Financing Scheme(GTFS-Producer & GTFS-User)

OBJECTIVE

To promote investments in Green Technology, which refers to products,

equipment or systems which satisfies the following criteria;

� Minimizes the degradation of the environment.

� Has zero or low green gas (GHG) emission.

� Safe for use and promotes healthy and improved environment

for all forms of life.

� Conserves the use of energy and natural resources.

� Promotes the use of renewable resources.

DESCRIPTION GTFS – Producer GTFS - User

PURPOSE To finance investments in

the production of green

technologies that meets the

scheme objective.

To finance investments in

the utilization of green

technologies that meets

the scheme objective.

ELIGIBILITY

CRITERIA

Legal registered Malaysian-

owned companies (at least

51%) in all economic

sectors.

Legally registered

Malaysian-owned

companies (at least 70%)

in all economic sectors.


DESCRIPTION GTFS - Producer GTFS - User

FINANCING LIMIT Maximum RM50 million

(per company)

Maximum RM10 million

(per company)

FINANCING TENURE Up to 15 years Up to 10 years

TYPE OF FACILITIES All facilities All facilities



GUARANTEE FEE 0.5% p.a

INTEREST/

FINANCING RATE

Determined by Participating Financial Institutions

(PFIs)

GUARANTEE

COVERAGE

60% of financing amount



PARTICIPATING

FINANCIAL

INSTITUTIONS

� All commercial and Islamic banks

� Development Financial Institutions (Bank

Pembangunan, SME Bank, Agro Bank, Bank

Rakyat, EXIM Bank dan Bank Simpanan

Nasional)

IMPLEMENTATION

AGENCIES

� Malaysian Green Technology Corporation

� Credit Guarantee Corporation Malaysia Berhad



APPLICATION

METHOD

� All commercial and Islamic banks

� Development Financial Institutions (Bank

Pembangunan, SME Bank, Agro Bank, Bank

Rakyat, EXIM Bank dan Bank Simpanan

Nasional

APLLICATION

DEADLINE

Effective 1 January 2010 for a period of 3 years or

upon approval of financing up to RM1.5 billion,

whichever is earlier


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Credit Enhancer Scheme (ENHANCER)

& Credit Enhancer Scheme Islamic

(ENHANCER-i)

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Credit Enhancer Scheme (ENHANCER)

ObjectiveTo assist entrepreneurs who have viable business

but lack the collateral to obtain the required

financing amount from Financing Institutions.

Credit Enhancer Scheme Islamic (ENHANCER-i)

ObjectiveTo assist entrepreneurs who have viable business

but lack of collateral to obtain required Islamic

Financing facilities.

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Loan amount:

Min : RM50,000Max : RM10 million

Guarantee Fee Rate Structure:

Secured – between 2.10% and 3.20%Unsecured – between 2.40% and 4.00%*Based on the Risk Adjusted Pricing “RAP”

Credit Enhancer Scheme (ENHANCER) &


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Guarantee CoverGuarantee cover ranges from 30% to 90% as per computation below:-

Secured – 30% - 90% (no capping on loan amount)Unsecured – 30% - 80% (with maximum cover of RM3.0million)

Annual Lending RateUp to 2% above the Base Lending Rate (BLR) of the lending institutions.*FIs free to quote if the guarantee cover is 50% or less.



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Credit Facilities Covered� Term Loan / Term Loan-i � Fixed Financing-I� Cash Line-i� Bills Purchased / Bills Purchased-i� Overdraft / Overdraft-i� Bankers Acceptance / Bankers Acceptance-i � Letter of Credit / Letter of Credit-i � Shipping/Performance/ Bank Guarantee � Trust Receipt / Trust Receipt-i� Hire Purchase / Hire Purchase-i � Export Credit Refinancing (ECR) � Leasing /Leasing-I� Any other Islamic financing facilities determined from time to

time by CGC



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ENHANCER Express (new)

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Enhancer Express

� is all about enhancing :-

i. Outreach: targeted at smaller SMEs with loan requirement of RM

50K – RM 100K;

ii. Alignment with industry: Credit behaviour in lieu of financials;

iii. Simplicity: No financials required from borrowers;

iv. Faster Turnaround Time: 9 days only

Going to market fast : available for 3 months only or up to RM100million whichever comes FIRST !!

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Enhancer Express (product features)

No. Outline Description

1. Target Market • New and existing borrower.

• Company must be registered in Malaysia.

• Eligible to Sdn Bhd, Partnership & Sole Proprietorship business entity.

• Must be at least 51% Malaysian controlled and owned business entity.

• The business must be in operation for more than 3 years.

• Key person’s (Managing Director/Principal Partner/Proprietor) age must ≥

25 years and ≤ 65 years at point of application.

• Term Loan Only. Facility2.

• Wholesale & Retail Trade only.Eligible Economic Sector8.

• BLR + 1.75%.FI interest rate to borrowers7.

• Fixed at 4.50% per annum.Guarantee Fee6.

• Fixed at 70% of the unsecured portion.Guarantee Cover5.

• For business purposes only.Purpose of Financing4.

• Maximum 3 years.Tenure of Portfolio3.

9. Relationship with FIs• Having at least 2 years relationship (current accounts) with the FI of which

application is put forth.

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Flexi Guarantee Scheme(FGS)

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Qualifying Criteria;

i. Must comply with SMEs definitionii. Maximum shareholders funds not exceeding RM2

million;iii. Shareholding by Public Listed Companies and

Government Link Companies (if any) in the SMEsshould not exceed 20%;

iv. Not more than 7 years in operation. However,participating Financial Institutions may considercases of SMEs who have been in operation formore than seven years.


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Loan Funds Eligible for Guarantee;

i. Fund for Small & Medium Industry 2 (FSMI2)ii. New Entrepreneur Fund 2 (NEF2), andiii. Rehabilitation Fund for Small Businesses

(RFSB)

Type of Facilities;

i. Based on the credit facilities eligible under theFSMI2, NEF2 and RFSB respectively.


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Maximum Loan;

i. FSMI2 - RM5.0 million per customerii. NEF2 - RM5.0 million per customeriii. RFSB - RM1.5 million per customer

Maximum Tenure;

i. FSMI2 - 5 yearsii. NEF2 - 5 yearsiii. RFSB - 5 years


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Maximum Interest Rate;

i. FSMI2 - 4.0% p.a to 6.0%ii. NEF2 - 4.0% p.a to 6.0%iii. RFSB - 5.0% p.a

Guarantee Fee & Guarantee Cover;

i. Guarantee fee will be borne by the participatinginstitutions.

ii. Guarantee cover is up to 80%.


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SmallBiz Express Scheme (SBE)&

SmallBiz Express Scheme Islamic (SBE-i)

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The objective of SmallBiz Express (SBE) and

SmallBiz Express-i (SBE-i) is to assist SMEs who

have viable project/ business but lack of collateral

to obtain financing from participating financial

institutions (“PFI”).

Objective:

SmallBiz Express Scheme (SBE) &


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Aggregate Exposure

Borrowers can have more than one loan under CGC guarantee (multiple guarantees at maximum 5 different FIs are allowed inclusive of the new application) with aggregate exposure (loan amount - secured and not secured) not more than RM250,000 per SME.

Loan amount

Min: RM20,000Max: RM50,000

Tenure

Up to 5 years



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Guarantee Fee Rate Structure

Secured – 4.80% p.a.Unsecured – 6.00% p.a.

Guarantee Cover

Maximum 80% of the Approved Total Principal Amount only

Annual Lending Rate

Up to 2% above the Base Lending Rate (BLR) of the lending institutions.*FIs free to quote if the guarantee cover is 50% or less.

Type of Facilities

Term Loan/Financing Only



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maximising your financing opportunities with cgc · •incorporated on 5 july 1972. • authorized...

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