RM600 Million Government Guaranteed Islamic Medium Term Notes (IMTNS) to Boost SME Growth
Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank), an agency under the Ministry of Entrepreneur Development (MED) has successfully issued RM600 million Government Guaranteed Islamic Medium Term Notes (IMTNs) on 22 March 2019.
Aria Putera Ismail, Group President/Chief Executive Officer of SME Bank said, “The IMTNs were issued under the Shariah principle of Wakalah with commodity as the underlying assets. This is the fifth issuance from the RM3.0 billion IMTNs Programme. The proceeds from the Sukuk issuance will be utilised to finance Shariah compliant working capital for the SME entrepreneurs.”
Aria added, “SME Bank has successfully tightened the pricing in line with an overwhelming demand from Financial Institutions and Asset Management Companies. This is a testament of a strong government support, underscored by its emphasis in facilitating the Bank’s socio-economic agenda in developing the SME sector. In addition, RAM Ratings has also reaffirmed the AAA/Stable/P1 Financial Institutions rating to SME Bank further indicating the Government’s full confidence in SME Bank playing the role of nurturing and developing the SMEs.”
As a development financial institution, SME Bank continues to deliver and fulfil its responsibility to provide financing assistance towards the development of the unserve and underserved enterprises as mandated by the Government through its digital and technology transformation plan. To date, SME Bank has approved more than RM29 billion worth of financing to more than 17,000 customers.
In addition to financing facilities, the Bank’s Upward Migration effort under the Specific Intervention Programs has benefitted more than 1,200 entrepreneurs producing more sustainable SME entrepreneurs in the country. SME Bank through its wholly owned subsidiary, Centre for Entrepreneur Development and Research Sdn. Bhd. (CEDAR) has successfully trained and coached more than 36,000 participants since its establishment in 2013 and is served to complement the Bank’s developmental role on capacity building and development of the SMEs.
