The Information and Communications Technology (ICT) industry in Malaysia began its nascent growth with the launch of the Multimedia Super Corridor in 1997 – the country’s designated ICT zone, designed to leapfrog Malaysia into the information and knowledge economy.
A funding infrastructure was developed to support the industry’s research, development and commercialization activities. Growth and expansion stage ICT companies, however, found difficulty in accessing financing from financial institutions or fulfilling their credit criteria.
To fill this funding gap, MDV was established, to provide Project Financing facilities to ICT companies to finance procurement of the necessary project inputs, capital expenditure and working capital. Through MDV’s Partner Banks, MDV provides trade and guarantee facilities as required by the project or contract. A second key role is to function as development facilitators of key identified technology sectors.
MDV’s first fund was sourced from The Japanese Bank of International Cooperation (“JBIC”), through the Ministry of Finance. The first fund totalled RM1.6 billion, for the purpose of providing project financing facilities to ICT companies. In 2007, MOF approved RM2.5 billion for MDV’s Second Fund. For the first tranche, MDV issued an RM1.5 billion Islamic Medium Term Note (iMTN) to finance technology projects. In conjunction with the Second Fund, MDV expanded its focus areas to include Biotechnology.
The Second Fund was raised via the Islamic Capital Markets to among others expand the depth and breadth of Islamic financing programmes and to support the Government’s and MOF’s objectives of positioning Malaysia as an Islamic Financial Center. As such, MDV now offers Islamic and Syariah Compliant project financing facilities, based on Murabahah and Commodity Murabahah.
On 3rd May 2011, MDV has officially launched our new Green Technology Financing Programme, marking MDV’s third focus area.