KUALA LUMPUR (April 9, 2012): Malaysia Debt Ventures Bhd, a government-backed funding provider for start-ups, will plow in big money this year to kick-start several green energy projects.
Managing director and CEO Md Zubir Ansori Yahaya said 50% of the approved RM970 million in funding will be channelled into sustainable and renewable energy ventures.
“We plan to give emphasis to the green technology sector. Late last year, feed-in-tariff was finalised and the Sustainable Energy Development Authority of Malaysia approved 200MW of solar power. This approval is an opportunity for us to tap into renewable or alternative energy,” he told SunBiz.
Zubir, however, did not specify the projects that MDV will participate in.
Zubir says MDV will plow in big money this year to kick-start several green energy projects.
MDV is a wholly-owned subsidiary of Minister of Finance Inc which was set up in 2002 to provide project financing for information, communication and technology (ICT) companies.
The funding was primarily for procurement, capital expenditure and working capital.
Zubir said MDV will launch new products such as leasing services, post-shipment and working capital in the third quarter.
He said to-date, MDV has approved RM6 billion worth of loans, of which RM4 billion has been disbursed. It has so far financed some 300 companies and 500 projects.
Under its current portfolio, Zubir said MDV is providing financing for ICT, biotechnology and green technology sectors. The financier is also eyeing new sectors like nanotechnology and aerospace.
“The features of ICT projects are that they don’t have strong asset, don’t have business experience (run by youngsters) but their strength is the Intellectual Property (IP). Banks don’t accept these; they want high collateral and long experience and track record as well as orderbook. We will put emphasis on management and technical (aspects),” Zubir said.
The largest recipients of MDV’s funding this year would be the green technology sector, which would account for 50% of the loans approved while the traditional ICT segment was allocated 30% of its budget and the rest to biotechnology firms.
“Around RM650 million is expected to be disbursed. Normally, disbursement follows milestones. So, not all approved loans will be disbursed throughout the year,” Zubir said. –theSundaily