Standard Chartered Saadiq & CGC roll out first Islamic Portfolio Guarantee scheme for SMEs

KUALA LUMPUR, 21 November 2013 – Standard Chartered Saadiq Berhad (Saadiq) today sealed an agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to provide financing to small and medium enterprises (SMEs) with the launch of the country’s first Islamic Portfolio Guarantee (PG) scheme.

Saadiq, a wholly-owned Islamic banking subsidiary of Standard Chartered Bank Malaysia is the first Islamic bank to enter into such agreement with CGC, as it aims to provide a comprehensive range of Syariah compliant solutions and help businesses grow.

The Islamic PG scheme is a term financing facility that offers financing from RM100,000 up to RM800,000 with flexible financing tenure of between 36 and 84 months. With RM200 million to be offered under the new agreement, about 400 SMEs are expected to benefit from the scheme within the next one year.

“We believe that the Islamic-based PG will provide various benefits to the industry as it provides a viable alternative to those SMEs that prefer Syariah-compliant banking to obtain greater access to financing. It will certainly contribute to further growth and development of Islamic financing in Malaysia,” said CGC’s Managing Director Datuk Wan Azhar Wan Ahmad.

“We remain committed in addressing the unique banking needs of SMEs especially those that are marginal but potentially viable by providing innovative financial solutions and alternate avenues to gain access to financing of their choice,” added Datuk Wan Azhar.

“SME is one of the fastest growing segments in Islamic finance. For Saadiq, as we focus on offering a comprehensive product suite, the roll out of this Islamic PG scheme for SMEs which is the country’s first demonstrates our commitment to this vital and growing segment which is the backbone of many economies worldwide,” said Wasim Saifi, CEO, Standard Chartered Saadiq & Global Head, Islamic Consumer Banking, Standard Chartered Bank.

The agreement was signed by CGC’s Head of Business Development Ms. Kristine Ng Wei Miem and Mr. Wasim Saifi, CEO, Standard Chartered Saadiq & Global Head, Islamic Consumer Banking, Standard Chartered Bank and witnessed by CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad at a signing ceremony today.

Under the agreement, CGC guarantees 70 per cent of the approved total principal amount undertaken by SMEs and assists to verify the credibility of applicants in consultation with Saadiq.

The scheme enables SMEs to gain quicker access to financing with speedier turnaround time in terms of approval and disbursement as applications are evaluated for eligibility based on a pre-determined and simplified set of criteria.

SMEs have the advantage of transacting the trading process with aqad or contract process via Short Messaging Service (SMS) upon acceptance with speedy full financing disbursement within three days. The Bank also benefits from certainty of a pre-determined guarantee cover percentage for the amount that is agreed upon giving it higher level of confidence in granting financing to the SMEs.

Prior to the launch of the Islamic PG scheme, RM500 million of financing has been made available via the conventional PG scheme in partnership with CGC benefiting about 2000 SMEs.

The Islamic PG Scheme is available at all Saadiq and Standard Chartered Bank branches nationwide.

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About CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and commercial banks. The core business focus of CGC is to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has cumulatively guaranteed more than 420,000 loans valued at close to RM51 billion since its establishment.

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world’s most dynamic markets and earns around 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.

With 1,700 offices in 70 markets, the Group offers exciting and challenging international career opportunities to over 88,000 staff. It is committed to building a sustainable business over the long term and upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. Standard Chartered’s heritage and values are expressed in its brand promise, ‘Here for good’.

For further information please visit standardchartered.com. Follow Standard Chartered on facebook.com/standardchartered and on Twitter@StanChart.

Standard Chartered in Malaysia

Standard Chartered Bank, a member of the Standard Chartered Group was established in Malaysia in 1875 and incorporated as Standard Chartered Bank Malaysia Berhad on 29 February 1984. As Malaysia’s first bank, Standard Chartered leads the way through product innovation, consistent and strong growth performance and sustainability initiatives. The Bank’s two businesses – Wholesale and Consumer Banking – provides a comprehensive range of financial products and services to corporates, institutions, small and medium-sized enterprises and individuals through its network of 42 branches across Malaysia.

In 2001, Standard Chartered UK established its third global technology & operations centre, Scope International, in Malaysia – the first international bank to do so in the country. Scope International provides software development, banking operations, IT support services and customer service capabilities to the Bank in up to 70 countries. It now houses the biggest software development company in the country, International Software Centre Malaysia (ISCM) and has a total workforce of more than 3,200 people.

Price Solutions Sdn Bhd, a wholly owned subsidiary of Standard Chartered Bank UK is also located in Malaysia. The company promotes and markets Standard Chartered’s financial products in Malaysia through a network of direct sales agents.

Standard Chartered Saadiq Berhad, Standard Chartered Bank Malaysia’s Islamic Banking subsidiary was established in November 2008. It offers a full suite of Syariah-compliant products and services to individuals and corporates through its Saadiq branches.

Standard Chartered employs close to 7,000 employees in all its Malaysian operations.