KUALA LUMPUR (Sept 30): Malaysia Debt Ventures Bhd (MDV) is planning the issuance of a new RM2 billion fund that will allow it to accelerate efforts in financing green technology projects and support the government’s green growth target, which was outlined in the 12th Malaysia Plan (12MP) that was tabled in Parliament recently.
The wholly-owned Minister of Finance Inc subsidiary, which was set up to provide flexible and innovative financing to develop high-impact and technology-driven sectors of the economy, has funded over 100 green technology-related companies to date with a combined RM1.34 billion in financing.
In a statement Thursday, it said it will continue to speed up its efforts to support the green tech sector’s growth by providing improved and affordable access to financing for micro, small and medium enterprises (MSMEs) to support the government’s green growth target.
It will also widen its financing focus across all technology sectors, particularly those that are rapidly growing in importance such as agri-tech and med-tech, which augurs well with the objectives of the 12MP, said MDV chairman Khairul Azwan Harun.
MDV’s efforts, Khairul Azwan said, include developing plans to attract more private funds into the market via the establishment of joint funds to finance technology start-ups in priority sectors, which have the capacity to be transformed via technology adoption, such as fintech, agri-tech and med-tech, so as to increase the start-ups’ funding capacity and increase their potential for success.
“As a technology financier, MDV’s capacity to contribute to the success of the 12MP, particularly in the area of green growth, through specialised financing solutions for green technology players in the market, is immense.
“Our reputation as one of the pioneers and leaders in green technology financing as well as our expertise in financing Renewable Energy (RE) and Energy Efficiency (EE) projects would be invaluable to the achievement of the green growth target under the 12MP,” he said.
To effectively execute its strategies, and to ensure that it continues to have adequate funds to support the financing requirements of technology companies — including those in the green technology sector — MDV is now in the final stages of finalising the issuance of its new RM2 billion fund.
“This is an important milestone for the company as this will be our first ever fund to be raised based on a standalone credit rating which also marks the company’s shift into becoming a fully sustainable organisation.
“With the 12MP being in motion, MDV is confident that the economic outlook for the next five years remains to be positive, and will be well received by both the rakyat and the technology sector, supported by MDV’s innovative funding solutions in achieving a sustainable and profitable growth for the nation,” he added.
Source: The Edge Markets