KUALA LUMPUR, Dec. 11 (Xinhua) -- Export-Import Bank of Malaysia Bhd (EXIM Bank) has set a target to approve 70 percent ofa one-billion-ringgit fund (277.78 million U.S. dollars) under the EXIM Overseas Guarantee Facility (EOGF) next year, an official said here on Monday.

More than 500 million ringgit (138.89 million U.S. dollars) of the fund is expected to be disbursed by the end of next year, EXIM Managing Director and Chief Executive Officer Kamal Mohd Ali said.

The fund will serve as a guarantee fund for capable Malaysian companies to secure funding from the participating financial institutions against a guarantee from EXIM Bank, he said at the signing of the facility between EXIM Bank and major Malaysian banks here, including Maybank.

EOGF is a special fund established by Malaysia's central bank with an allocation of one billion ringgit (277.78 million U.S. dollars) to support the government's strategies in enhancing financing for Malaysian contractors who are sourcing for or have obtained overseas contracts or projects.

Kamal said the fund also aims to spur the export of Malaysian professional services such as information technology, project consultancy and engineering service sectors overseas.

With the EOGF, the participating financial institutions are able to provide financing to borrowers for up to 90 percent of the contract value in major currencies, such as the U.S. dollar, the British pound, the euro and Japanese yen for a tenor of up to 10 years.