Malaysia’s Investment Account Platform (IAP) is raising money for its first foreign project, expanding the reach of the Shariah compliant multibank platform.
Malaysian-Japanese venture CMC Group and its sponsoring bank, Bank Islam, intend to secure RM12 million (US$2.76 million) via the IAP to part-finance CMC’s RM23 million (US$5.29 million) telecommunication integration project for the Ho Chi Minh City Urban Railway System (Line 1) in Vietnam, a project contracted by Japan’s Hitachi Kokusai Electric. The campaign for this restricted investment account transaction, which carries an expected return of 6.3% per year with a minimum investment amount of RM5,000 (US$1,150.23), is due to close on the 22nd May. As at the 11th May however, only 3% (RM340,000 or US$78,186.4) of the target has been met.
“This Metro Line Project is CMC’s inaugural overseas railway integration project, which marks the beginning of our long-term investment into Vietnam, and at the same time, kicking off our strategy to export locally-nurtured railway skills and competencies,” explained CEO Hazwan Alif.
This is Bank Islam’s second IAP project, the first being a RM6 million (US$1.38 million) campaign to finance Koperasi Kakitangan Kumpulan BIMB Holdings last year, which successfully closed within three weeks. Other funding campaigns listed on the IAP during April-May include Bank Muamalat’s RM10 million (US$2.3 million) Perak Transit project (successfully funded) and Maybank Islamic’s RM60 million (US$13.8 million) specific unrestricted investment account.