MBSB ... May 09

It has secured a RM500 million facility as alternative funding that will allow it to expand its business.

From next year, they are targetting a more aggressive business plan by increasing its retail market penetration as well as its corporate business.

MBSB signed an agreement with issuer Cagamas Bhd and three local banks on the securitisation of mortgages assets for the RM500 million facility. The five-year tenure facility is structured under an asset-based securitisation by way of purchase with recourse with a back-to-back arrangement through Maybank, Affin Bank and EON Bank. Maybank has committed a sum of RM250 million, Affin RM150 million and EON RM100 million.

MBSB will be able to tap the low interest rate Cagamas funds while the lenders' credit risk is mitigated via the recourse term embedded in the facility.

They are looking at putting in place plans for personal financing relating to government servants. Also, it will focus on its two other core activities which include the mortgage and corporate businesses.