RHB Islamic Bank today inked a strategic partnership with Credit Guarantee Corporation (“CGC”) to become the country’s first bank to provide Wholesale Guarantee Islamic (WG-i) Bumi, a scheme for Bumiputera SMEs. The agreement provides additional avenue for the Bank to extend its financing packages to deserving Bumiputera SMEs.
Today’s partnership signifies RHB Islamic as the first Islamic bank to provide WG-i and the first bank to provide WG-i Bumi scheme under the Programme Financing Module (PFM). “We understand the challenges faced by SMEs in expanding and growing their businesses, as such today’s partnership with CGC is testament to RHB’s commitment in creating synergy in the financial services sector to provide our customers with better options and facilities that are sustainable,” said Dato’ Adissadikin Ali, Managing Director of RHB Islamic Bank Berhad.
The collaboration for the WG-i scheme is set to enhance the position of the existing selected portfolio in terms of its asset quality. The WG-i is an avenue for better management of capital charge for the SME portfolio in order to provide competitive financing packages in terms of pricing among others. With WG-i, SMEs can leverage on the guarantee provided by CGC on portfolio basis which in turn will create opportunities for better cash flow management for the SMEs as compared to the traditional product offerings available in the market.
72 existing Islamic Bumiputera SME customers under the SME portfolio will benefit from this scheme conforming to the predetermined eligibility criteria set by both CGC and RHB Islamic.
Source: Media Release