Malaysia Debt Ventures to raise RM2b via bond, sukuk issuance in November
PETALING JAYA, Oct 27 — Malaysia Debt Ventures Bhd (MDV) plans to boost RM2 billion funding from the capital market through a bond/sukuk issuance programme subsequent month.
Chairman Khairul Azwan Harun talked about MDV is transferring away from government-guaranteed bonds and sukuk since its establishment in 2002, as part of its funding diversification approach in rising its funding functionality, guaranteeing liquidity, and long-term self-sustainability.
“This will in all probability be MDV’s fourth fund, which moreover marks our first fund to be raised based mostly totally on our standalone credit score standing,” he talked about at a media briefing entitled “Driving the Technology Sector’s Post-pandemic Growth” proper right here, proper now.
The RM2 billion bond/sukuk funding is part of MDV’s 5 key initiatives that the company is taking to strengthen its operate in rising the experience (tech) sector.
As certainly one of many quick initiatives, Khairul Azwan talked about, MDV will lengthen the moratorium for affected shoppers comprising startups and small and medium enterprises (SMEs) to recuperate their enterprise and regain operational stability.
“We will check out the extent of difficulties of each agency/startup. It is likely to be three months or six or as much as 12 months…it depends upon,” he talked about.
He talked about MDV has undertaken three moratorium measures, and to this point, the implementation of the moratorium as a result of the Movement Control Order (MCO) in 2020 had benefitted 66 firms with full deferments of RM134 million comprising principal and income funds.
“MDV moreover launched the Liquidity Financing for Technology Startups (LIFTS) facility ultimate 12 months (beforehand usually often called TAFRF), which is a RM100 million explicit programme for tech firms which have been badly hit by Covid-19, by supporting firms’ short-term cash flow into factors.
“MDV has to this point accredited over RM74 million in financing for 64 firms and has disbursed RM33.50 million to 35 firms in diversified experience sectors beneath this programme,” talked about Khairul Azwan.
Elaborating on the matter, MDV chief govt officer Nizam Mohamed Nadzri talked about the company has moreover proposed to extend the programme into LIFTS 2.0 with an additional fund of RM100 million to help eligible startups and SMEs develop and develop plans in reaching their post-pandemic improvement potential.
He talked about LIFTS 2.0 will hold a low charge of curiosity threshold and financing will in all probability be capped at RM10 million per applicant.
Meanwhile, in its functionality as a provider of enterprise debt financing for enterprise capital (VC)-backed startups, Nizam talked about MDV has obtained approval from the Finance Ministry to arrange a Venture Capital Company (VCC) and a Venture Capital Management Company (VCMC).
This will enable MDV to create increased financing options for early-stage technology-based startups and corporations, typically between the Seed and Series A funding cycle.
“Another initiative is to arrange a National Technology Financing Hub at Technology Park Malaysia, the place will in all probability be our new head office.
“We envision the hub might even function as a Centre of Excellence for Venture Finance, and provide infrastructure assist corresponding to evaluation, teaching centres and so forth that contributes to the strengthening of the startup ecosystem in Malaysia,” he talked about.
— eNM