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ACIS X BHD, a large conglomerate in Country M, has been awarded a project to updrage the internet facilitites into high-speed network bandwith at the

ACIS X BHD, a large conglomerate in Country M, has been awarded a project to updrage the internet facilitites into high-speed network bandwith at the government office nationwide. The project cost is estimated around RM15 mil and installation period is within 1.5 years. ACIS X BHD has made a deal with Islamic Bank ZZZ to provide 3 years financing for its working capital. Repayment will be made on bullet payment basis. The payment from government will be received in stages within 3 years after the tender award.


However, Bank ZZZ still has a concern on default risk even it is a government project. As a Bank ZZZ relationship manager, you are assigned to handle this deal: 


Explain the Shariah concern in the proposed structure and suggest the solution?

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