Sunday, July 14, 2024
ReportIAP goes international

IAP goes international

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.


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