KUALA LUMPUR: Bank Islam Malaysia Bhd aims to increase the banking facilities for its Vendor Financing Programme (VDP) to between RM1.2 bil and RM1.3 bil next year and expand the programme to the healthcare and communications sectors, CEO Muazzam Mohamed said Dec 3.
Currently, he noted, the financing facilities are for the oil and gas and energy sectors and among the clients are vendors under Petroliam Nasional Bhd, Tenaga Nasional Bhd and Sarawak Energy Bhd.
“As of November 2019, Bank Islam has approved about RM1 bil for these two sectors,” he said after witnessing a signing ceremony for a facility amounting to RM98.35 mil between the bank and Setegap Ventures Petroleum Sdn Bhd (SVP), a Petronas vendor that specialises in upstream well intervention activities.
This is a continuation of Bank Islam’s VDP to promote and further catalyse the growth of the country’s oil and gas industry.
The facility, Muazzam added, is intended to finance SVP’s capital expenditures and working capital requirements to complete its contract with Petronas.
He said of the RM1 bil financing allocated for this year, the bank had approved RM332 mil in banking facilities to 82 vendors under the Petronas VDP, a specially created initiative for small and medium enterprises which have secured contracts with the national oil and gas company.
“The programme’s main objective is to lessen the financial burden of oil and gas services and equipment vendors in fulfilling their obligations with Petronas.”
Muazzam added that the bank is committed to supporting SMEs and aims to extend its SME portfolio while seeking more collaborations with government-linked companies and other large corporations via their VDPs.
Meanwhile, SVP CEO Mohd Shahrin Saad said the company plans to expand its business to Thailand and Indonesia.
Incorporated in 2003 as a wholly-owned Bumiputera entity, SVP has evolved over the years to become a one-stop centre for the oil and gas sector. – Bernama
