It is a facility in foreign currency (FC) to finance importation of goods including capital goods from foreign suppliers and export of goods to foreign buyers.

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Available in USD, EURO, Japanese Yen, CHF and GBP

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To finance import of goods drawn under Letter of Credit, Inward Documentary Collection or import and export under open account basis

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Margin of financing is up to 100 % of invoice value or part thereof

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Minimum financing amount is USD50, 000-00 or RM equivalent of USD50, 000-00 for other currency

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Period of financing is a minimum of 14 days and maximum of 180 days for USD and other currencies are restricted to 1,2,3 or 6 months only

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Two methods of repayment on maturity date i.e. by debiting directly from Foreign Currency Account (FCA) or to contract for foreign currency rate and debit from RM account

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Booking of Forward Exchange Contract (FEC) is allowed provided customer has FEC facility

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Customers are required to have facility with the bank. Further enquiries can be made at any Trade Finance Centres or Business Centre nationwide

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Applicable to finance either import or export including under open account basis

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Can enjoy lower interest rate, as it is determined based on inter bank rate/ cost of fund, which is normally lower than BLR

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Can seek OFCL financing when the interest rate for FC borrowing is lower than the interest rate for Ringgit borrowing

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Need not pay the import in Ringgit Malaysia upon taking up the documents

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Can mitigate the FC exchange risk as he has the option to authorise his bank to debit FCA on maturity date of the loan

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Can enjoy lower interest rate as the interest is based on the inter bank rate/ cost of fund, which is normally lower than BLR