AFFIN ISLAMIC supports growth of UMP Holdings Sdn Bhd (UMPH) with term financing facility

KUALA LUMPUR, Monday (March 1, 2010): Affin Islamic Bank Berhad (AFFIN ISLAMIC) and UMP Holdings Sdn Bhd (UMPH) today announced that both parties have entered into a term financing arrangement to purchase property to support the growth of the campus.

UMPH presently rents various commercial properties for use as campus, administration and related facilities and amenities. In the medium term, UMPH believes that ownership of these assets rather than renting, would provide greater flexibility for expansion and development. UMPH secured three term financing from AFFIN ISLAMIC with a value of RM137.7 million to fund this acquisition.

AFFINBANK Managing Director/ CEO Dato' Zulkiflee Abbas Abdul Hamid says, "We are pleased to notch another milestone in the growth of our Islamic banking business through our subsidiary, Affin Islamic Bank. Islamic banking has a strong growth potential and securing this term financing arrangement reflect well on AFFIN ISLAMIC in the market, even though it is less than four years old. We take pride in our approaches by developing Islamic financial instruments that are syariah-compliant yet commercially strong. We believe such approaches will further strengthen our capabilities for clients who seek financing through halal means."

Universiti Malaysia Pahang (UMP) Vice Chancellor, YBhg. Prof. Dato' Dr. Daing Nasir Ibrahim says, "This is our first banking relationship with AFFIN ISLAMIC. We are pleased to receive the strong support from the Bank in developing this financing arrangement. The combination of parties’ resources, capabilities and market experience will bring tremendous synergistic benefits. This banking relationship will benefit both parties in future."

This is AFFIN ISLAMIC's second innovative financing structure to date. Earlier in 2008, AFFIN ISLAMIC also collaborated with another property developer for the first hybrid musharakah agreement.

Together, these initiatives have strengthened the Bank's visibility in the market and  created opportunities for clients to seek Islamic financing facilities as alternatives to conventional financing packages. Furthermore, these innovative products also helped to fulfil the government's aspiration to meet the increasingly diversified and sophisticated market demand and transform the country into an international hub for Islamic finance.

UMPH, a wholly owned subsidiary of UMP, was incorporated to operate UMP's business in information technology, business solutions and manages the University's trust fund. UMPH, formerly known as KUKTEM Holdings Sdn. Bhd., was incorporated on March 8, 2004.