Maybank Islamic Launches Musharakah Mutanaqisah Term Financing-i (MMTF-i)
Maybank Islamic today launched a new Islamic Term Financing Facility specifically suited for corporate and business customers.
Musharakah Mutanaqisah Term Financing-i (MMTF-i) is a Shariah-compliant financing facility for asset acquisitions and refinancing landed properties, plant and machinery, vessels and commercial vehicles.
The contract for MMTF-i is based on the Islamic principle of Musharakah Mutanaqisah, or diminishing partnership concept. Customers taking this financing will enter into a Musharakah Mutanaqisah Co-ownership Agreement with Maybank Islamic to jointly acquire and co-own the asset. The Bank will lease its share of the asset to the customer and the customer, as an owner-tenant, agrees to pay monthly payments which consist of monthly rental payment and the acquisition payment intended to gradually acquire the Bank’s share of the jointly-owned asset. The ownership of the property will progressively move towards the customer and the financing ends when the customer owns 100% of the property.
Acting CEO of Maybank Islamic, Ibrahim Hassan said, “We are pleased to offer another facility that complements our existing Term Financing-i as an alternative for customers to manage their asset acquisitions and refinancing. Musharakah Mutanaqisah concept is internationally accepted and available to both local and foreign customers. The introduction of this latest facility given today’s challenging business environment is our commitment to offer value to customers and assist in sustaining the growth momentum for business.”
MMTF-i is offered at very competitive financing rate and available under fixed and floating rate. Customers are also eligible for a 20% remission from stamp duty. “Given these benefits, MMTF-i therefore offers significant advantages to business customers. We are targeting for MMTF-I to significantly contribute to our 10-15% growth target in Maybank Islamic’s overall financing portfolio for the next financial year. To date, Maybank Islamic has more than RM8.2 billion in outstanding financing to the business sector,” added Ibrahim.
MMTF-i is Maybank Islamic’s seventh latest mainstream banking product introduced since it commenced operations on 1 January 2008. Ibrahim said Maybank Islamic will continue to bring to the market a comprehensive range of ringgit and foreign currency denominated banking products to meet the ever growing needs of Malaysia’s individual and business customers