MDV RETAINS RATINGS OF AA3/STABLE/P1 REFLECTING ITS CONTINUED STRATEGIC NATIONAL ROLE AND SOLID CREDIT PROFILE

KUALA LUMPUR, 1 NOVEMBER 2022: RAM Ratings has reaffirmed Malaysia Debt Ventures Berhad’s (MDV) corporate credit ratings at AA3 and short-term rating at P1 with a stable outlook. The agency also reaffirmed the same ratings for MDV’s new RM2.0 billion sukuk/bond programme, which was activated earlier this year.

MDV’s corporate credit ratings were initially assigned by RAM Ratings in 2019 and formed part of  MDV’s long-term plan to be self-sustainable, financially independent, and less reliant on direct government funding support. The reaffirmation of the ratings reflects MDV’s continued strategic national role in promoting the growth of Malaysia’s technology sector with strong government support in view of the Company’s developmental mandate to support the financing requirement of underserved technology companies, particularly small and medium-size enterprises (SMEs).

MDV’s solid credit profile is also integral to the reaffirmation of the ratings by the agency. MDV’s Chairman, Khairul Azwan Harun said that MDV’s role as the nation’s technology financier remains relevant even after two decades of its establishment as it continues to chart progress in its efforts to catalyse the growth of Malaysia’s technology sector amid the challenging economic recovery phase.

Azwan added that MDV is pleased with the reaffirmation of the ratings especially for its RM2.0 billion sukuk/bond programme, as the funds raised from the programme will allow MDV to continue its support of the ICT and telecommunications sectors given the expected focus on building Malaysia’s next generation communications infrastructure and the rapid digitalisation of the Malaysian economy. MDV is also looking to further extend its financing to new green technology projects in sectors such as renewable energy, energy efficiency, solar, hydro etc. consistent with Malaysia’s continued emphasis on sustainable development to combat the effects of climate change on the environment.

“With the current year coming to a close, and the global economic outlook for 2023 remaining uncertain, MDV is committed and well prepared in ensuring that our business and operations continue to remain resilient. MDV is also on track in accelerating our plans and strategies to widen access of financing for technology-based companies and start-ups, as well as contribute to jobs creation in the market, while supporting the nation in its path towards economic recovery,” he concluded.

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Photo of Mr Khairul Azwan Harun, Chairman of MDV

About MDV – The Nation’s Technology Financier

Malaysia Debt Ventures Berhad (MDV) is a wholly-owned subsidiary of the Minister of Finance (Incorporated) [MOF (Inc)] established in 2002 with the objective of providing flexible and innovative financing to develop high-impact and technology-driven sectors of the economy, identified and prioritised by the Government as future engines of growth. MDV’s strategic role in the technology financing ecosystem in Malaysia is defined by its approach to funding which is different from other financial institutions. MDV’s niche is helping to fund young technology-based companies or start-ups that are unable to secure financing from commercial financial institutions due to their novel business model, lack of proven operating track record and lack of collaterals. With the rapid rate of technological and digital advance, and Malaysia’s continued push towards becoming an advanced nation, MDV will continue to have a significant role to play particularly in financing emerging technology areas and in achieving its vision of becoming the Nation’s Technology Financier.

For more information on MDV, visit http://www.mdv.com.my/

For media enquiries, please contact:
Siti Ezrina Alias
Head, PR & Communications
Malaysia Debt Ventures Berhad
+6011 3306 5216
ezrina@mdv.com.my