It is a trade facility to finance import or purchase and export or sales. It is governed by AB-i guidelines issued by Bank Negara Malaysia. There are two types of AB-i financing:

1. AB-i Import/Purchase:
It is a Usance bill of exchange drawn by the Bank on the customer and accepted by the customer to finance import/purchase. Issued based on the Shariah contract of Murabahah.

2. AB-i Export/Sales:
It is a Usance bill of exchange drawn by the customer and accepted by the Bank to finance export/sales. It is issued based on the Shariah contract of Bai Al Dayn.

Features

Minimum amount of financing: RM50, 000 or equivalent
Minimum financing period: 21 days
Maximum financing period: 180 days

• Margin of financing is up to 100% of invoice value
• A means of financing for working capital requirements
• One of the cheapest means of financing in RM currently available
• Requires customers to have a facility with the bank

Benefits

• Competitive pricing. Profit rate is based on the prevailing money market rate quoted by the Bank on daily basis
• Tradable in the secondary market
• Financing rate is fixed throughout the tenor
• Transaction based on ‘halal’ goods