KUALA LUMPUR: Malaysia Debt Ventures Bhd (MDV) has launched a RM300 million financing programme to help companies keen on green technology projects, in support of the government’s move to promote the sector.
Chairman Datuk Dr Abdul Samad Alias said financing will be given to companies undertaking projects in seven segments.
They are energy; transportation and logistics; agriculture and nutrition; environmental quality and safety; water and water treatment; industrial; and advanced materials.
Eligible companies will be able to receive contract financing from as low as RM2 million to RM120 million, with financing margins of up to 85 per cent of the contract value.
He expects the fund to be fully taken up by the end of MDV’s current financial year ending March 31 2012.
“If required, we will increase the fund size,” he told reporters yesterday at the launch of the programme by Deputy Finance Minister Datuk Donald Lim.
This is the third financing programme by MDV, a wholly-owned subsidiary of Minister of Finance Inc.
Set up in 2002, MDV provides early stage funding for companies in the technology sector, with a fund size of RM4.1 billion. It currently provides financing for the biotechnology and information and communications technology industries.
Lim, meanwhile, urged local banks to approve loans to green technology companies.
Malaysian Green Technology Corp chief executive Dr Nazily Mohd Noor recently said that banks are not brave enough to finance green technology projects as they fear the risks involved.