FAQs
| General | ||||||||||
| 1. | Who is MDV? | |||||||||
| 2. | What is project financing? | |||||||||
| 3. | How is MDV different from other financial institutions in Malaysia? | |||||||||
| 4. | Is MDV related to MAVCAP? | |||||||||
| 5. | What is MDV’s role in nation building? | |||||||||
| 6. | Does MDV support start-up companies? | |||||||||
| 7. | How much loan has MDV disbursed? | |||||||||
| 8. | Who are the companies that MDV has financed? | |||||||||
| 9. | How do I get in contact with MDV? | |||||||||
| Product and Services | ||||||||||
| 1. | What are the products that MDV offers? | |||||||||
| 2. | What is MDV’s interest rate? | |||||||||
| 3. | What are the advantages of MDV’s debt financing? | |||||||||
| 4. | Does MDV participate in co-financing or syndicated financing? | |||||||||
| 5. | What are the services that MDV offers? | |||||||||
| Application Criteria | ||||||||||
| 1. | What are MDV’s criteria for evaluating an application? | |||||||||
| 2. | What is the loan sizes that MDV can finance? | |||||||||
| 3. | What is the tenure of loan that MDV can finance? | |||||||||
| 4. | What is the structure of the loan repayment? | |||||||||
| 5. | What are the types of projects that MDV can finance? | |||||||||
| 6. | What kind of collateral does MDV require? | |||||||||
| 7. | Can a foreign-owned company apply to MDV? | |||||||||
| 8. | If I have a project that is partially completed, can I still apply for MDV project financing? | |||||||||
| 9. | Does MDV finance capital expenditure and working capital for company expansion? | |||||||||
| Loan Application Process | ||||||||||
| 1. | What is the loan application process? | |||||||||
| 2. | If my application is unsuccessful the first time, can I re-apply? | |||||||||
| 3. | What are the loan processing fees that MDV charges? | |||||||||
| General | ||||||||||
| . | Who is MDV? Incorporated on April 23, 2002 as a wholly-owned subsidiary of the minister of Finance Inc, MDV has been entrusted to manage an initial RM 1.6 billion (USD420 million) soft fund from the Goverment of Japan. The fund comes via the Japan Bank for International Cooperation (JBIC) for the financing of project in ICT and Biotech and other high growth sectors. In addition, MDV has been authorised to raise RM2,5 billion of which RM500 million has been raised for a second fund to enhance MDV’s current portfolio of high growth sectors to include biotechnology. We are an innovative financier and development facilitator of ICT and Biotech business. Unlike any other financier, we specialise in ICT and BIotech industries and understand cutting-edge information and communication technologies. |
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| 2. | What is project financing? Project financing is the complete debt financing of capital expenditures, supplies, overheads, working capital and other requirements as detailed in the project costing schedules that are charged to the project sponsors (paymasters of the projects). MDV can provide project financing of up to 85% of the value of the contract issued for the project or 100% of the project cost, whichever is lower. |
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| 3. | How is MDV different from other financial institutions in Malaysia? Please refer to Our Positioning and Our Key Differences sections. |
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| 4. | Is MDV related to MAVCAP? Both MDV and MAVCAP are wholly-owned by the Minister of Finance, Inc. but were established to perform different but complementary functions in the ICT financing ecosystem. MDV provides debt financing whereas MAVCAP provides equity financing. |
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| 5. | What is MDV’s role in nation building? MDV’s role in nation building is to accelerate the growth of ICT and Biotech and other high growth sectors in Malaysia by providing financing with attractive terms and support services to companies that more often than not 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. This, we hope, will encourage other financial institutions in the longer term 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, but may not be able to meet the traditional terms of lending currently offered, especially in terms of collateral required. For Biotechnology, MDV has also allocated RM500 million worth of loans under its new financing programme. The financing facility, which is part of the RM1.5 billion Second Fund, is intended for biotechnology companies growing beyond the pre-commercialisation stage, covering the funding of the sector’s equipment and infrastructure, working capital and received projects or contracts. The new financing 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. |
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| 6. | Does MDV support start-up companies? Yes. Your management’s track record is more important than your company’s history in our evaluation of your application. We will consider financing any company that has a strong project/contract irrespective of its number of years in operation or size. Beyond financing, we also extend Nurturing Services to assist start-ups and SMEs to grow their business and develop entrepreneurial skills. |
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| 7. | How much loan has MDV disbursed? Please refer to our Loan Portfolio section. |
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| 8. | Who are the companies that MDV has financed? Our clients range from start-ups to SMEs to public-listed companies to government-linked companies. |
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| 9. | How do I get in contact with MDV?
Kindly contact us at: MALAYSIA DEBT VENTURES BERHAD (578113-A) General Line: +60 3 2617 2888 For enquiries on project financing and our loan application process, kindly contact our Credit Marketing Consultants below :
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| Product and Services | ||||||||||
| 1. | What are the products that MDV offers? Please refer to Our Products section. |
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| 2. | What is MDV’s interest rate? Our interest rate ranges from 6% to 8% (depending on the risk profile of the project). The rate is fixed over the entire tenure of the loan and is calculated on a daily rest basis. Annual interest payment is charged twelve months in advance. |
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| 3. | What are the advantages of MDV’s debt financing? Please refer to Our Advantages section. |
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| 4. | Does MDV participate in co-financing or syndicated financing? Yes. MDV will consider financing projects as a co-financier, provided MDV’s terms of financing are met. |
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| 5. | What are the services that MDV offers? Please refer to Our Services section. |
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| Application Criteria | ||||||||||
| 1. | What are MDV’s criteria for evaluating an application? Please refer to Our Criteria section. |
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| 2. | What is the loan sizes that MDV can finance? We will consider financing up to a maximum of 85% of the value of your contract or the total cost of the project, whichever is lower. We will consider loan size of between RM250,000 and RM120 million (depending on the risk profile of the borrower). |
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| 3. | What is the tenure of loan that MDV can finance? Our repayment period is between 1 and 5 years for ICT and betweeb 1 and 10 years for Biotech. However, there is no penalty for early repayment of principal. |
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| 4. | What is the structure of the loan repayment? We offer flexible repayment terms that are aligned to the cash flow of your project. |
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| 5. | What are the types of projects that MDV can finance? MDV finances ICT and high growth projects with assured revenue streams and therefore, ICT projects with direct contracts from project owners/sponsors have the highest chance of approval. This is because direct contracts will guarantee a secured, fixed value revenue stream, which will in turn give MDV strong collateral in the form of assignment of contract proceeds from the project sponsor. In exceptional cases, MDV also finances projects with no direct contracts (Build-Own-Operate [BOO], Build-Own-Transfer [BOT] and Open Ended [OE] projects), when it is shown that the likelihood of achieving project targets and profitability is very high. |
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| 6. | 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. |
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| 7. | 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. |
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| 8. | 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. |
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| 9. | 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. |
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| Loan Application Process | ||||||||||
| . | What is the loan application process? Please refer to our Loan Process. |
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| 2. | 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. |
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| 3. | What are the loan processing fees that MDV charges? Please refer to Our Fees section. |
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Green Living Tips
Turn off your lights
Turn off your lights when you are not using them. The benefits are obvious.
Turn off your lights when you are not using them. The benefits are obvious.
