Pursuant to its RM 1 Billion Sukuk Facility (“Third Fund”) that was launched in August 2017, Malaysia Debt Ventures Berhad (MDV), has recently received approval for the issuance of RM 270 Million under its Islamic Medium Term Notes (“iMTN”). This approval will be used to finance companies under MDV’s mandate primarily the Small Medium Enterprises (“SMEs”) involved in the ICT, Green Technology and Emerging Technology in Malaysia.
The approval will facilitate MDV’s existing commitment of timely funding to customers in implementing their projects and generating new economic and employment activities targeted towards supporting technology and growth sectors. Furthermore, this approval will facilitate MDV’s role in assisting SMEs that are looking for small scale financing of RM 3.0 Million to RM 5.0 Million that among others are undertaking projects or contracts in telecommunication, energy performance contracting and IT projects.
Launched to allow MDV to continue financing companies under its technology mandate, the Third Fund is fully guaranteed by the Government of Malaysia. To-date, the total drawdown of RM500 Million demonstrates the Government’s robust commitment to Malaysia’s development in the technology sector as well as its support of MDV’s ongoing commitment of financing demands from companies with bankable technology projects.
Notwithstanding, MDV is also engaged in a continuous effort of exploring alternative funding to help reduce the Government’s contingent liability and at the same time lessen its dependency on Government guaranteed funds to sustain its operations.
MDV will continue to strive to fulfill its mandate to increase access to financing for high-value start-up and early stage companies from high-impact technology sectors, thereby catalysing the development and advancement of the country’s technology sector.