This is a financing facility for the purchase of commercial properties and calculated on a variable profit rate basis. You are offering your property as a security for this financing. • You also have an option to apply for Cash Line Facility-i together with this application

Commercial Property Financing-i (Variable Rate) and Cash Line Facility-i (Variable Rate) The Shariah Concepts applicable are Tawarruq, Wa’d, Murabahah and Wakalah.

Tawarruq means an arrangement that involves two sale and purchase contracts. The first involves the sale of the commodity by the Bank to the customer on deferred payment at cost plus profit basis whereby the purchase price and the sale price are disclosed to the customer. Subsequently, the customer will sell the same commodity to a third party on cash and spot basis.
Wa’d means a unilateral promise or undertaking which refers to an expression of commitment given by one party to another to perform certain action in the future. Murabahah refers to a sale and purchase of a commodity where the acquisition cost and the mark-up are disclosed to the Customer.
Wakalah refers to a contract in which a party as principal (muwakkil) authorises another party as agent (wakil) to perform a particular task in matters that may be delegated, with or without the imposition of a fee. In this product, you appoint the Bank as an unrestricted agent to perform the Tawarruq arrangement.

The Tawarruq arrangement shall be arranged as the following:
i. You appoint the Bank as your agent to purchase Shariah-compliant commodity such as Crude Palm Oil (CPO), etc. from the Bank and to sell the commodity to any third party.

ii. Pursuant to your purchase request and undertaking, the Bank will purchase commodity from any third party at cost.

iii. The Bank sells the agreed commodity to you at the Bank’s Selling Price on deferred payment basis.

iv. As the purchaser of the commodity, you shall have the right to take delivery of the commodity at your own cost and expenses.

v. The Bank sells your commodity on your behalf to any third party for a price equal to the Facility Amount.

vi. The proceeds of the sale shall be disbursed to you as per the agreed terms and conditions.

BFR is the reference rate used as the basis for pricing retail financing facilities. The BFR is determined based on Overnight Policy Rate (OPR) imposed by BNM.