Maybank and CGC tie up to provide RM2bil financing for SMEs

Fitch Ratings said Maybank's long-term IDRs and viability rating (VR) reflected its dominant franchise in Malaysia and able management team, which help to underpin its stable funding and liquidity position, sound capital buffers and steady earnings performance through business cycles.

PETALING JAYA: Malayan Banking Bhd (Maybank) and Credit Guarantee Corp Bhd Bhd (CGC) have tied up to provide up to RM2bil financing for small and medium-sized enterprises (SMEs) in Malaysia.

In a joint statement, the country’s largest banking group said it has entered into a strategic partnership with CGC to provide the facility via CGC’s portfolio guarantee (PG) scheme. This would be the largest ever amount under the CGC PG scheme to support local SMEs in growing their businesses.

Under the Maybank-CGC PG scheme, SMEs would be able to apply for either Islamic or conventional financing facilities from Maybank, from a minimum of RM50,000 to a maximum of RM1.5mil, and for a fixed tenure of up to seven years, the companies said.

They added that 70% of the principal financing amount would be guaranteed by CGC.