CGC, OCBC team up again to offer additional RM250mil under WG scheme

KUALA LUMPUR: Credit Guarantee Corporation Malaysia Bhd (CGC) and OCBC Malaysia are offering a fresh RM250 million in unsecured financing to Small Medium Enterprises (SMEs) over the next 12 months as part of their five-year-old pioneering Wholesale Guarantee (WG) scheme.

In a joint statement today, the companies said the fresh tranche would bring the total disbursed by the middle of next year to RM1.64 billion.

OCBC Malaysia had previously disbursed RM1.39 billion under the scheme, particularly in industries ranging from retail and wholesale to manufacturing. 

“Of the fresh RM250 million tranche, RM200 million will be from OCBC Bank and RM50 million from OCBC Al-Amin, to be disbursed to 1,000 SME accounts,” it said.

The companies revealed that the ratio of financing risk was shared equally between CGC and OCBC Malaysia for a guarantee period of four years.

CGC President and chief executive officer Datuk Mohd Zamree Mohd Ishak said the WG scheme provided capital relief to OCBC and OCBC Al-Amin in accordance to Basel II, as well as additional security on their MSME (micro, small and medium-sized enterprises) exposure.

OCBC Bank chief executive officer Datuk Ong Eng Bin said the bank was keen to develop new tranches of WG in line with the increasing call from SMEs for unsecured financing options to fulfil their short- to medium-term business financing needs.

“As a bank that is steeped in the SME business landscape, we recognise unsecured financing as a necessity and are pleased to once again make available, with CGC, this facility to businesses with established track records that can leverage on their sound financial statements,” he added. - Bernama