KUALA LUMPUR, Feb 19 (Bernama) — Malaysia Debt Ventures Bhd (MDV) is collaborating with Malaysian Biotechnology Corp for the Malaysian 2nd Generation Industrial Biotechnology Feedstock Initiative (MY2GEN).
Under the initiative, MDV as a premier technology financier will provide financing assistance by offering loans/Islamic financing to palm oil millers who meet the MY2GEN requirements.
The company has allocated RM200 million for the MY2GEN programme, which is expected to provide for the financing needs of 20 palm oil millers to erect and commission 200,000 metric tonnes of second-generation cellulosic sugar conversion facilities on their premises.
“With the commitment given by MDV, we believe it would be able to accelerate growth in the biotechnology sector towards high-income nation by 2020,” said managing director/chief executive officer Datuk Md Zubir Ansori Yahya in a statement.
MY2GEN is a government-private initiative to provide systematic collaboration between palm oil millers, technology providers, downstream chemical players and financiers in the production of high value cellulosic sugar bio-based chemicals.
The RM200 million by MDV will be offered to pioneering participating millers to fund up to 70 per cent of the project cost.
The government will further ease the millers’ financing cost by giving a two per cent interest rate subsidy per annum throughout the loan duration.
With the lower financial cost, MDV anticipates great interest from pioneering millers, said Md Zubir.
For the initiative, MDV will offer MY2GEN customers the MDV Revolving Project Line financing packaging on a fixed tenure basis for the capital expenditure component of erecting a conversion facility.
Since its inception in 2002, MDV has approved loans amounting to RM6.3 billion to some 500 companies, with 74 per cent channelled to small and medium enterprises.