1. Green Project Financing by MALAYSIA DEBT VENTURE (MDV)
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Green Project Financing by MALAYSIA DEBT VENTURE (MDV)
Presenter :
Abu Hasan Abd Manan
Senior Vice President
Business Division

2. ESTABLISHMENT 100% owned by the Minister of Finance Inc, Malaysia
Background
ESTABLISHMENT
100% owned by the Minister of Finance Inc, Malaysia
Commenced operations in mid 2002 to manage and administer RM1.6 billion (USD420m) G2G loan from Japan
First ever lending program developed to drive the ICT industry
Dual Role – Innovative Financier and Development Facilitator for ICT, Biotechnology, New & Emerging Sectors

3. MDV ‘s Vision and Mission
Our Vision:
The Nation’s leading technology financier
Our Mission:
To support the Nation’s technology agenda and increase Malaysian technology companies’ probability of success through:
Innovative and flexible financing solutions
Specialised funding programs
Industry expertise and advisory services
Nurturing young companies
To remain financially sustainable while fulfilling our developmental role

4. MDV ‘s Mandated Technology Focus
INFORMATION & COMMUNICATION TECHNOLOGY
BIOTECHNOLOGY
GREEN TECHNOLOGY
EMERGING TECHNOLOGY
2002
2008
2011
2014
Products and services that (1) provide superior performance competitively, (2) reduce or eliminate negative environmental impacts and (3) improve productive and sustainable use of resources
High value & high impact technologies including:
Healthcare
Communications, Content & Infrastructure
Oil, Gas & Energy
E&E
Technologies for gathering, storing, retrieving, processing, analyzing, and transmitting information
Use of living organisms or biological techniques to provide chemicals, drugs, food and services
PREMIER TECHNOLOGY FINANCIER IN MALAYSIA

5. Financing of Solar – MDV Perspective
An Initiative by Government
through
Kementerian Tenaga, Teknologi Hijau dan Air (Kettha)
via
Sustainable Energy Development Authority (SEDA)
and
Malaysia Greentech Corporation

6. Financing of Solar – MDV Perspective
Ground Mounted Solar Farm

7. Financing of Solar – MDV Perspective
Building Integrated Photo Voltaic (BIPV) Solar Farm

8. Financing of Solar – MDV Perspective
Commercial Building Solar Rooftop

9. SOLAR FINANCING: Achievement
More than 25 Solar Project Financed with 30MW collective capacity

10. SOLAR FARM PROGRESS FLOW
Feed-in-Tariff (FiT) Approval from SEDA
Renewable Energy Power Purchase Agreement (REPPA) with Tenaga Nasional Berhad (TNB)
Green Tech Financing Scheme (GTFS) Certificate from Malaysia GreenTech Corp
Financing from MDV
CGC Guarantee under GTFS

11. MDV’s Financing Criteria
Application Criteria
Loan Size - financing up to 80% of contract value or total project cost, with loan size up to RM75 million
Loan Tenure - Repayment period up to 15 (Green Tech) years
Loan Repayment - Flexible repayment terms that are aligned to the cash flow of your project
Collateral - Do NOT necessarily require hard and cash collaterals

12. MDV’s Financing Criteria
Eligibility Criteria
Public or private limited company incorporated in Malaysia
Minimum paid-up share capital of RM100,000
Minimum five (5) employees
No restriction on foreign shareholding
Viable technology project/ contract

13. DUE-DILIGENCE TOOLBOX
Experience
Capability
Commitment

14. DUE-DILIGENCE TOOLBOX
Performance
Sun Hour
Power System Study

15. DUE-DILIGENCE TOOLBOX
Solar Module
Inverter
Transformer

16. Project costing on similar capacity
DUE-DILIGENCE TOOLBOX
Project costing on similar capacity
(average RM7.0 million to RM8.0 million per MW)

17. DUE-DILIGENCE TOOLBOX
Timely project execution vis-à-vis Initial Operation Date (IOD) and Commercial Operation Date (COD)
- Regression Risk

18. MONITORING & SURVEILLANCE
DUE-DILIGENCE TOOLBOX
MONITORING & SURVEILLANCE

19. ENGINEERING, PROCUREMENT, CONSTRUCTION & COMMISIONING CONTRACTOR
EPCC
ENGINEERING, PROCUREMENT, CONSTRUCTION & COMMISIONING CONTRACTOR
(EPCC)

20. SOLAR FINANCING: Challenges
Vulnerability of rates
Rate offered by SEDA consist of variable rates i.e. SO2 – activities under BIPV Solar. Ability to consistently maintain and sustain the approved activities
Regression of rate due to delay completion
Land/ Space
Land Lease / Rental to include right of financier to enter.
Registration of the lease
Long term commitment by Landlord
Output
Reality/ Cash flow
Cash flow projection (Sun Hour vs Weather)
Allocation and reserves
Operation and Maintenance
Long term Operation and maintenance / Insurance
To do in house or to do comprehensive maintenance

21. GREEN TECHNOLOGY FINANCING SCHEME
MDV – Special Programs
GREEN TECHNOLOGY FINANCING SCHEME
(GTFS)
60% Guarantee by Credit Guarantee Corporation
BTP
2% Government Subsidy on Interest Rate

22. MDV – Other Renewable Energy Financing
Mini Hydro
Biomass Plant
Biogas Plant
Energy Savings Project
BTP

23. MDV – Emerging Technology
High value & high impact technologies
Healthcare
Communications, Content & Infrastructure
BTP
Oil, Gas & Energy
Energy & Efficiency

24. PRE-SHIPMENT/ DELIVERY
Financing Products
MDV offers a comprehensive range of financing from pre to post shipment/ delivery to meet the financing needs of technology SMEs
LIQUIDITY
SUPPORT
FLEXIBLE
FINANCING
PRE-SHIPMENT/ DELIVERY
POST-SHIPMENT
Trade Facilities / Guarantees
Term/ Project & Revolving Lines
Contract/ Project Financing
Structured to fund exceptional open-ended (i.e. non contract-backed) projects with high likelihood of project success and profitability, via term financing for Capex and revolving financing for Working Capital
Up to 85% of the value of the contract can be financed
Financing from RM0.5 million up to RM120 million for up to ten years
Cash Line
Equity Linked Financing
iFactoring / Project Financing
CONVENTIONAL LOANS
ISLAMIC FINANCING

25. Partner Network
MDV works closely with its network Cornerstone Partners/ Key Actors in the technology development space …

27. THANK YOU MALAYSIA DEBT VENTURES BERHAD
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THANK YOU
MALAYSIA DEBT VENTURES BERHAD
Level 5, Menara Bank Pembangunan,
1016 Jalan Sultan Ismail
Kuala Lumpur
General Line:
Fax:
Website:
Facebook: Malaysiadebtventures