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Green Project Financing by MALAYSIA DEBT VENTURE (MDV). Presenter : Abu Hasan Abd Manan Senior Vice President Business Division. Background. ESTABLISHMENT. 100% owned by the Minister of Finance Inc, Malaysia.
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Green Project Financing by MALAYSIA DEBT VENTURE (MDV) Presenter : Abu Hasan Abd Manan Senior Vice President Business Division
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
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
MDV ‘s Mandated Technology Focus INFORMATION & COMMUNICATION TECHNOLOGY GREEN TECHNOLOGY EMERGING TECHNOLOGY BIOTECHNOLOGY 2014 2002 2008 2011 • High value & high impact technologies including: • Healthcare • Communications, Content & Infrastructure • Oil, Gas & Energy • E&E 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 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
Financing of Solar – MDV Perspective An Initiative by Government through KementerianTenaga, TeknologiHijaudan Air (Kettha) via Sustainable Energy Development Authority (SEDA) and Malaysia Greentech Corporation
Financing of Solar – MDV Perspective Ground Mounted Solar Farm
Financing of Solar – MDV Perspective Building Integrated Photo Voltaic (BIPV) Solar Farm
Financing of Solar – MDV Perspective Commercial Building Solar Rooftop
SOLAR FINANCING: Achievement More than 25 Solar Project Financed with 30MW collective capacity
SOLAR FARM PROGRESS FLOW Green Tech Financing Scheme (GTFS) Certificate from Malaysia GreenTech Corp Financing from MDV CGC Guarantee under GTFS Feed-in-Tariff (FiT) Approval from SEDA Renewable Energy Power Purchase Agreement (REPPA) with Tenaga Nasional Berhad (TNB)
MDV’s Financing Criteria • Loan Size - financing up to 80% of contract value or total project cost, with loan size up to RM75 million Application Criteria • 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
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
DUE-DILIGENCE TOOLBOX Experience Capability Commitment
DUE-DILIGENCE TOOLBOX Performance Sun Hour Power System Study
DUE-DILIGENCE TOOLBOX Solar Module Inverter Transformer
DUE-DILIGENCE TOOLBOX Project costing on similar capacity (average RM7.0 million to RM8.0 million per MW)
DUE-DILIGENCE TOOLBOX Timely project execution vis-à-vis Initial Operation Date (IOD) and Commercial Operation Date (COD) - Regression Risk
DUE-DILIGENCE TOOLBOX MONITORING & SURVEILLANCE
EPCC ENGINEERING, PROCUREMENT, CONSTRUCTION & COMMISIONING CONTRACTOR (EPCC)
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 Operation and Maintenance Output Reality/ Cash flow • Long term Operation and maintenance / Insurance • To do in house or to do comprehensive maintenance • Cash flow projection (Sun Hour vs Weather) • Allocation and reserves
MDV – Special Programs GREEN TECHNOLOGY FINANCING SCHEME (GTFS) • 60% Guarantee by Credit Guarantee Corporation BTP • 2% Government Subsidy on Interest Rate
MDV – Other Renewable Energy Financing • Mini Hydro • Biomass Plant • Biogas Plant • Energy Savings Project BTP
MDV – Emerging Technology High value & high impact technologies • Healthcare • Communications, Content & Infrastructure BTP • Oil, Gas & Energy • Energy & Efficiency
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 Cash Line • 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 Trade Facilities / Guarantees Equity Linked Financing iFactoring / Project Financing Term/ Project & Revolving Lines Contract/ Project Financing CONVENTIONAL LOANS ISLAMIC FINANCING
Partner Network • MDV works closely with its network Cornerstone Partners/ Key Actors in the technology development space…
THANK YOU MALAYSIA DEBT VENTURES BERHAD Level 5, Menara Bank Pembangunan, 1016 Jalan Sultan Ismail Kuala Lumpur General Line: +60 3 2617 2888 Fax: +60 3 2697 8998 Email: info@mdv.com.my Website: www.mdv.com.my Facebook: Malaysiadebtventures