Malaysia Debt Ventures Berhad (578113-A)
The Nation’s Leading Technology Financier
MOSTI

FAQs

Who is MDV?

MDV is a Premier Innovative Financier and Development Facilitator for the Information and Communication (ICT), Biotechnology, Green Technology and other emerging technology sectors in Malaysia.  Incorporated on April 23, 2002 as a wholly-owned subsidiary of the minister of Finance Inc., MDV has been entrusted to provide financing for projects in these sectors at the point of commercialisation.  With a fund size of RM4.1 billion, MDV offers innovative financing solutions and nurturing initiatives to spur the growth of these sectors based on client’s needs. MDV offers conventional and Islamic financing facilities.

What is project financing?

Project financing is a long term financing of projects based upon the projected cash flows of the project rather than the balance sheets of its applicants and/or contract awarders. Usually, a project financing structure involves a number of equity investors, known as ‘contract awarder’ as well as a syndicate of banks or other lending institutions that provide financing to the operations. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cashflow rather than the general assets or creditworthiness of the project contract awarders. The financing is typically secured by all the project assets, including the revenue producing contracts.

Under MDV’s project financing facility, MDV provides project financing of up to 85% of the value of contract for the project or 100% of the project cost. The financing arrangement would cover capital expenditures, working capital including overhead cost involved for the respective project.

How is MDV different from other financial institutions in Malaysia?

Please refer to Our Positioning and Our Key Differences sections.

Is MDV related to MAVCAP?

Both MDV and MAVCAP are sister companies as both companies are wholly-owned subsidiaries of the Minister of Finance, Inc.MDV provides debt financing whereas MAVCAP provides equity financing, which are complementary to support the ICT ecosystem.

What is MDV’s role in nation building?

MDV’s role in nation building is to accelerate the growth of ICT, Biotech and Greentech and other high growth sectors in Malaysia. Over and above the financing support given to companies, MDV also provide nurturing support through its independent advice and guidance to assist clients in their projects, potential projects, business areas requiring additional attention and cash flow management.

The financial support and services provided to companies by MDV are more often provided to companies which  would not fit the financing criteria of commercial banks and VCs.

MDV’s mission is to establish a blueprint and prove that financing the ICT industry can be a profitable business, provided a proper methodology is established and an in-depth understanding of technology and the industry is maintained.

In the medium and long run, this will inevitability encourage other financial institutions to enhance their understanding of the ICT industry and offer more of their services to ICT companies that have the capability and potential to succeed.

For Biotechnology, MDV has also allocated RM500 million worth of loans under its new financing programme to provide financial support to biotechnology companies to grow beyond the pre-commercialisation stage. Under this program, the financial support would cover the capital expenditure   working capital associated with projects or contracts. This programme is also in line with the government’s National Biotechnology Policy to utilise the country’s wealth in biodiversity and providing a conducive environment for biotech-driven businesses to grow.

MDV has been entrusted to manage funds of above RM4 billion for the financing of projects in ICT, Biotechnology and Green Technology sectors

Does MDV support start-up companies?

Yes. Our consideration for start-up companies shall include the management’s track record in undertaking and successfully delivering projects.

Beyond financing, we also extend Nurturing Services to assist start-ups and SMEs to grow their business and develop entrepreneurial skills through post approval assessment and monitoring to ensure success of projects/contracts undertaken.

How much loan has MDV disbursed?

Please refer to our Loan Portfolio section.

Who are the companies that MDV has financed?

Our clients range from start-ups to SMEs to public-listed companies to government-linked companies.

How do I get in contact with MDV?

Kindly contact us at:

MALAYSIA DEBT VENTURES BERHAD (578113-A)
Level 5, Menara Bank Pembangunan,
1016, Jalan Sultan Ismail,
50250 Kuala Lumpur,
Malaysia

General Line: +60 3 2617 2888
Fax: +60 3 2697 8998
Email: info@mdv.com.my
Website: www.mdv.com.my

For enquiries on project financing and our loan application process, kindly contact our Credit Marketing Consultants below :

Name Mobile Number Email
Sharul Sazman Samaan 012 9254352 sharul@mdv.com.my

What kind of collateral does MDV require?

We do NOT require hard collateral (i.e. direct change on high value fixed assets) and cash collateral. We accept Assignment of Contract Proceeds, Personal Guarantees, Corporate Guarantees, Assignment of Intellectual Property Rights, Export Letters of Credit and Debentures as collateral.

Can a foreign-owned company apply to MDV?

Yes, an applicant can be 100% foreign-owned as long as the company is incorporated in Malaysia.

If I have a project that is partially completed, can I still apply for MDV project financing?

We will only be able to finance the uncompleted and unpaid portion of the project, provided that the uncompleted portion has substantial work left to complete over a reasonably long period above our loan processing duration.

Does MDV finance capital expenditure and working capital for company expansion?

Yes, we can, provided it is required in order to fulfill a contract(s), which forms the basis of the loan application to MDV.

What are the products that MDV offers?

Please refer to Financing & Programmes section.

What is MDV’s interest/profit rate?

Our interest/profit rate ranges from 7% to 9% (depending on the credit and risk profile of the project).

What are the advantages of MDV’s debt financing?

Please refer to Our Advantages section.

Does MDV participate in co-financing or syndicated financing?

Yes. MDV also participate in co-financing as well as syndicated financing arrangement with other Financial institutions.

What are the services that MDV offers?

Please refer to Financing & Programmes section.

What are MDV’s criteria for evaluating an application?

Please refer to Our Criteria section.

What is the loan sizes that MDV can finance?

MDV loan size ranges between RM250,000 to RM120 million.

What is the tenure of loan that MDV can finance?

Our loan tenure ranges between 1 and 10 years depending on the project cashflow. However, there is no penalty for prepayment of facility.

What is the structure of the loan repayment?

We offer flexible repayment terms based on the project the cash flow.

What are the types of projects that MDV can finance?

MDV finances projects/contracts secured by ICT companies where contract proceeds is assignable to MDV. The awarders for these projects/contracts are government or government bodies or financial strong companies which will ensure a secured revenue stream to the company as well as MDV as it forms part of the security arrangement for financing.

Apart from the above, MDV also finances projects/contracts with no direct contracts under various arrangement ie. Build-Own Operate (BOO), Build-Own-Transder (BOT) and Open Ended (OE) projects. These projects/contracts be funded among others based on the viability project, capability of the project sponsor as well as the sponsor strength.

What kind of collateral does MDV require?

Typically, our collateral are Assignment of Contract Proceeds, Personal Guarantees, Corporate Guarantees depending on the project. Our forms of collaterals include Assignment of Intellectual Property Rights, Export Letters of Credit and Debentures.

Providing hard collaterals are NOT a main requirement (ie. high value fixed assets) and/or cash collateral for our financing arrangement.

Can a foreign-owned company apply to MDV?

Yes, an applicant can be 100% foreign-owned as long as the company is incorporated in Malaysia.

If I have a project that is partially completed, can I still apply for MDV project financing?

We will only be able to finance the uncompleted and unpaid portion of the project, provided that the uncompleted portion has substantial work left to complete over a reasonably long period above our loan processing duration.

Does MDV finance capital expenditure and working capital for company expansion?

Yes, we can, provided it is required in order to fulfill a contract(s), which forms the basis of the loan application to MDV.

What is the loan application process?

Please refer to our Loan Process.

If my application is unsuccessful the first time, can I re-apply?

You may resubmit your application for the same project after meeting our eligibility criteria and addressing all the areas of concern highlighted during your previous application. For application for a new project, we will evaluate it independently from your previous application.

What are the loan processing fees that MDV charges?

Please refer to Our Fees section.

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