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Frequently Asked Questions

When was JOHOR INVESTMENT BERHAD MALAYSIA established?

JOHOR INVESTMENT BERHAD MALAYSIA (JIB) was incorporated as a Malaysia Shareholding Company under the Malaysia Commercial Company Law, on 4th January 2006, and licensed by Malaysia Central Bank as an investment company.

What are the activities of JOHOR INVESTMENT BERHAD MALAYSIA?

As per the Articles of Association, JOHOR INVESTMENT BERHAD MALAYSIA is engaged in Financing and Investment activities in conformity with the Principles of Islamic Shari’ah. Its strategic vision of the future is to be a leading and innovative international Islamic investment institution for Corporate/individual project owners, JOHOR INVESTMENT BERHAD MALAYSIA secure fund for Projects and Businesses that includes Oil and Gas, Agriculture, Mining,Tech, and Telecommunications, Infrastructure, Real Estate development, Maritime, Hospitality, Biotechnology, Health Care, Renewable Energy,Solar, Wind, Biofuel, Biomass, Geothermal, Hydro Power, Green Energy Storage,Natural Gas, Carbon Emission Control Projects, Aviation, LNG Projects, Production, Manufacturing, Education etc, both on-going and startups.

What is the capital of JOHOR INVESTMENT BERHAD MALAYSIA?

RM 9,300,000,000

Is JOHOR INVESTMENT BERHAD MALAYSIA fully Islamic?

Yes, JOHOR INVESTMENT BERHAD MALAYSIA is fully Islamic and all the offered services are in conformity with the principles of Islamic Shari’ah and supervised by the Shari’ah Supervisory Board.

What are your most important investment services?

Investment House offers a variety of investment products and services including • Investment Banking • Asset Management • Wealth Management • Project Finance • Real Estate Investments • Equipment Finance • Dealing Room in the global stock markets.

Can JOHOR INVESTMENT BERHAD MALAYSIA help me setup meetings with investors and other Regulatory entities?

JOHOR INVESTMENT BERHAD MALAYSIA organizes physical meetings between investors and borrowers. We also connect partners with government-affiliated entities to support your establishment and growth globally.

Does JOHOR INVESTMENT BERHAD MALAYSIA only operate in Malaysia?

JOHOR INVESTMENT BERHAD MALAYSIA’s goal is to support the growth and expansion of innovative companies globally and help them make an impact on the world stage. We have a number of consultants around the world to help project owners understand the market and investment opportunities in Malaysia.

Am I able to obtain JOHOR INVESTMENT BERHAD MALAYSIA services after I have started my business?

We provide “After Care” services to ensure that our investors/project owners are satisfied and business needs are fulfilled. You can contact us at any point to avail our services. You may also be eligible to apply to any number of our investment programmes at any time.

What`s Project Finance?

Project finance is not as well understood than it should be due largely to the fact that there is no consensus definition of project finance. Perceptions of what constitutes project financing vary depending on the definition of project finance you first learned. We list three of the most widely accepted definitions below. 1. A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flow and earnings of that economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan
2. The raising of funds to finance an economically separable capital investment project in which the providers of the funds look primarily to the cash flow from the project as the source of funds to service their loans and provide the return of and a return on their equity invested in the project
3.The financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cash flow generated by the project

Is Collateral required in project finance?

Yes, the borrower will be required to setup a special purpose vehicle (SPV) as loan investment collateral, which shall be managed by a third party PMC (project management company) appointed by the investor, who shall manage the SPV throughout the duration of contract, all cost associated with SPV formation will be paid by the borrower.

Who pays due diligence costs in a project financing?

We break project finance due diligence into two distinct packages. The preliminary due diligence investigation is performed more or less coincidentally with the site visit. The final, comprehensive due diligence is performed after you get preliminary approval. The borrower pays for both investigations, the site visit costs for two of our senior managing partners, and all expenses.

What is the due diligence process in a project financing?

Before we submit a project finance loan request or documents to our financial partners, we perform a preliminary due diligence investigation. While not the final, comprehensive due diligence that will be required if the deal continues forward, the preliminary due diligence investigation is intended to uncover any sponsor or project deficiencies that would hinder the closing of the project financing. We will verify the Sponsor's reputation, financial strength, and relevant experience. We will verify the quality and sufficiency of the project documents (at least those that have been prepared to date), and we will analyze the project and property in tandem with our site visit. Our Preliminary Due Diligence Report will be prepared after the site visit and provided to the lenders.

Is the borrower required to have equity in the deal?

Yes. We require actual cash equity in the deal. All project finance lenders, project finance arrangers and project finance providers require the borrower to have equity in the deal. We have never funded a project financing with less than 10% equity, and then only once in the last decade. The average project financing last year closed with 63% debt and 37% sponsor equity. Project finance is not speculation. It was developed more than 700 years ago as a method of financing that is specifically intended to mitigate or eliminate risk. In fact, almost every element and procedure in project finance are for risk mitigation. For every project finance transaction closed there are more than 20 applications because project finance lenders are extremely careful about taking risk. Deals with no equity don’t get funded and deals with very little equity stand very little chance. For additional information see

Will you invest financially in my project?

If the lenders do not appoint us as loan supervisors we may join the lending syndicate.

What does due diligence entail?

We perform enhanced due diligence on all project stakeholders with an emphasis on project sponsors. The due diligence investigations are mandatory and project finance underwriting cannot be completed until all of the due diligence has been implemented. We have a form for project sponsors which are furnished at the start of underwriting. Due diligence investigations are performed by a third party service with whom we have an agreement for discounted investigative fees and you are only responsible for the actual fee.

How do I qualify for project finance?

You must have a registered company, a business plan with its detailed financial analysis within a specified term period.

How much funding can I get?

There are no funding limits, the outcome of your project evaluation will determine how much funds you can get.

What is the interest rate on debt funding?

Interest rate is capped at 4% per annum and could be negotiated downwards considering the project prospects upon evaluation and approval for funding. SPV is required as collateral for loan.

What is the equity share % on Equity finance?

Equity finance is capped at 40% equity share; SPV will be required from the borrower as collateral to mitigate risk.

How long does it take to close a project finance deal?

Approximately 4 weeks or more depending on how fast the project owner responds to demands.