Malaysian Industrial Development Finance Bhd (MIDF) plans to launch a new financing facility using sharia-based principles by the second quarter of this year.
Its group chief executive Mohd Sallehuddin Othman said MIDF will allocate RM50 million for the new service under its development financing operations.
"We believe that there will be good demand for Islamic-based financing, especially among the small and medium industries, which are the core market segment for our development financing activities," Mohd Sallehuddin said yesterday.
MIDF has signed with AmMerchant Bank Bhd and eight other financial institutions to raise RM500 million which comprise bonds, preference shares and a bank guarantee facility. RM200 million will be used to refinance bonds issued for the acquisition of Amanah Capital Partners Bhd (ACP) through a general offer.
