Malaysia Debt Ventures Berhad (MDV) had entered into a RM121.44 million Syndicated Islamic Financing Facility with Bank Islam Malaysia Bhd to finance Kerian Energy Sdn Bhd’s (Kerian Energy) construction of a 14MW Mini Hydro Power Plant in Sungai Kerian, Perak (Mini-Hydro Power Plant). MDV’s contribution to the syndication is RM60.72 million of the Syndicated Facility.
Leveraging on its experience from having financed 14 Renewable Energy projects, MDV brings its expertise in financing such projects to the syndication.
In a statement today, MDV said the proceeds of the Syndicated Facility will be used to finance the construction, operation and maintenance of the Mini-Hydro Power Plant project, which was awarded to Kerian Energy by the Sustainable Energy Development Authority (SEDA) on 14 December 2011.
The syndication of Kerian Energy’s facility will enable Kerian Energy to achieve the project’s feed-in tariff commencement date (FiTCD) on 30 November 2016.
Energy generated by the planned Mini-Hydro Power Plant will be supplied to Tenaga Nasional Berhad and add to Malaysia’s fast growing pool of Renewable Energy resources.
MDV’s participation in the Syndicated Facility reflects MDV’s mandate to facilitate the financing of technology projects and companies either directly or through other platforms, including via participation in the syndication of facilities.
MDV expects the project to showcase the financial viability of Mini Hydro Power Plants and serve as a catalyst for greater participation by financial institutions in financing such projects.
Mini Hydro Power Plants serve as an essential tool for the Government to achieve its emission commitments strike a balance between environmental conservation and sustainable development. In the short-term, the project will also contribute positively to economic activity for the state of Perak.
As a leading financier under the Green Technology Financing Scheme, in terms of the number of projects financed, MDV hopes that moving forward it will be able further contribute its expertise in financing green technology projects via syndication deals with other financial institutions.
Going forward, MDV looks to continue its efforts to finance green technology projects including Renewable Energy to help achieve the Government’s national renewable energy target of 11% by 2020 and accelerate the development of Malaysia’s Green Economy.
MDV’s Managing Director/ Chief Executive Officer, Datuk Md Zubir, wishes to highlight that “as the Nation’s premier technology financier, MDV has always been at the forefront in supporting the Government’s long-standing aspirations to pursue green growth for sustainability and resilience, as recently reiterated and articulated in the 11th Malaysian Plan.
This includes the stated goal of increasing the share of renewables in the Nation’s energy mix”.
MDV plays developmental roles in assisting technopreneurs to scale up commercially for market access, increase probability to penetrate and meeting up market potential demands, as well as provide funding that will trigger potential commercialization of the products.
To date, MDV has disbursed over RM8 billion worth of financing to more than 700 technology projects.
-THE MALAYSIAN RESERVE