MDV sets aside RM300mil for green technology

Share this post

Category: MDV in the News Post Date: May 4, 2011

MDV sets aside RM300mil for green technology

KUALA LUMPUR: Malaysia Debt Ventures Bhd (MDV), a financier and development facilitator for emerging technology sectors, aims to disburse RM300mil in loans under its green technology financing programme this year.

Managing director cum chief executive officer Md Zubir Ansori Yahaya said the programme was aimed at supporting the growth of Malaysian green technology companies.

“We expect the more demand for the fund as the starting capital investment for green technology business is quite expensive at a minimum of RM2mil,” he told reporters after the launch of the financing programme yesterday.

MDV has a fund size of RM4.1bil which could be used to provide loans to high-risk and emerging industries such as information and communication technology (ICT) and bio-technology and green tech financing programme. MDV is owned by Minister of Finance Inc.

He added that the group would fill the funding gaps in the financial ecosystem by providing financing for green technology.

As a “high risk” lender, MDV would look at the strengths of the projects proposed by the companies when they applied for the loans.

Eligible companies will be able to receive contract financing from RM250,000 with financing margins of up to 85% of the contract value with a loan repayment period of up to 10 years.

Meanwhile, deputy Finance Minister I Datuk Donald Lim Siang Chai, who launched the programme, said the ministry was hoping to receive more opinions from the local companies on ways to improve the distribution of funds for green technologies.

“Up until now, only RM204mil from the RM1.5bil fund set up last year have been disbursed. We want to know the cause of the slow take-up rate,” he said.

-The Star