Features

• Available in USD, EURO, Japanese Yen, CHF and GBP
• To finance import of goods drawn under Letter of Credit, Inward Documentary Collection or import and export under open account basis
• Margin of financing is up to 100% of invoice value or part thereof
• Lower interest rate, as it is determined based on inter-bank rate/cost of fund, which is normally lower than BLR
• Two methods of repayment on maturity date, i.e. debiting directly from FCA or to contract for foreign currency rate and debit from RM account
• Booking of Forward Exchange Contract is allowed only if customer has FEC facility
• Requires customers to have a facility with the bank
• Backed by over 400 branches nationwide, a network of over 80 international offices and more than 800 correspondent banks worldwide

Benefits

• Option of seeking OFCL financing when the interest rate for FC borrowing is lower than that for Ringgit borrowing
• Need not pay the import in Ringgit Malaysia upon taking up the documents
• Ability to mitigate the FC exchange risk as the customer can choose to authorise the bank to debit his Foreign Currency Account (FCA) on maturity date of the loan