[MDV] Frequently Asked Questions
Who is MDV?
MDV is a Premier Innovative Financier and Development Facilitator for the Information and Communication (ICT), Biotechnology, Green Technology and other emerging technology sectors in Malaysia. Incorporated on April 23, 2002 as a wholly-owned subsidiary of the minister of Finance Inc., MDV has been entrusted to provide financing for projects in these sectors at the point of commercialisation. With a fund size of RM4.1 billion, MDV offers innovative financing solutions and nurturing initiatives to spur the growth of these sectors based on client’s needs. MDV offers conventional and Islamic financing facilities.
What is project financing?
Project financing is a long term financing of projects based upon the projected cash flows of the project rather than the balance sheets of its applicants and/or contract awarders. Usually, a project financing structure involves a number of equity investors, known as ‘contract awarder’ as well as a syndicate of banks or other lending institutions that provide financing to the operations. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cashflow rather than the general assets or creditworthiness of the project contract awarders. The financing is typically secured by all the project assets, including the revenue producing contracts.
Under MDV’s project financing facility, MDV provides project financing of up to 85% of the value of contract for the project or 100% of the project cost. The financing arrangement would cover capital expenditures, working capital including overhead cost involved for the respective project.
How is MDV different from other financial institutions in Malaysia?
Please refer to Our Positioning and Our Key Differences sections.
Is MDV related to MAVCAP?
Both MDV and MAVCAP are sister companies as both companies are wholly-owned subsidiaries of the Minister of Finance, Inc.MDV provides debt financing whereas MAVCAP provides equity financing, which are complementary to support the ICT ecosystem.
What is MDV’s role in nation building?
MDV’s role in nation building is to accelerate the growth of ICT, Biotech and Greentech and other high growth sectors in Malaysia. Over and above the financing support given to companies, MDV also provide nurturing support through its independent advice and guidance to assist clients in their projects, potential projects, business areas requiring additional attention and cash flow management.
The financial support and services provided to companies by MDV are more often provided to companies which would not fit the financing criteria of commercial banks and VCs.
MDV’s mission is to establish a blueprint and prove that financing the ICT industry can be a profitable business, provided a proper methodology is established and an in-depth understanding of technology and the industry is maintained.
In the medium and long run, this will inevitability encourage other financial institutions to enhance their understanding of the ICT industry and offer more of their services to ICT companies that have the capability and potential to succeed.
For Biotechnology, MDV has also allocated RM500 million worth of loans under its new financing programme to provide financial support to biotechnology companies to grow beyond the pre-commercialisation stage. Under this program, the financial support would cover the capital expenditure working capital associated with projects or contracts. This programme is also in line with the government’s National Biotechnology Policy to utilise the country’s wealth in biodiversity and providing a conducive environment for biotech-driven businesses to grow.
MDV has been entrusted to manage funds of above RM4 billion for the financing of projects in ICT, Biotechnology and Green Technology sectors
Does MDV support start-up companies?
Yes. Our consideration for start-up companies shall include the management’s track record in undertaking and successfully delivering projects.
Beyond financing, we also extend Nurturing Services to assist start-ups and SMEs to grow their business and develop entrepreneurial skills through post approval assessment and monitoring to ensure success of projects/contracts undertaken.
How much loan has MDV disbursed?
Please refer to our Loan Portfolio section.
Who are the companies that MDV has financed?
Our clients range from start-ups to SMEs to public-listed companies to government-linked companies.
What kind of collateral does MDV require?
We do NOT require hard collateral (i.e. direct change on high value fixed assets) and cash collateral. We accept Assignment of Contract Proceeds, Personal Guarantees, Corporate Guarantees, Assignment of Intellectual Property Rights, Export Letters of Credit and Debentures as collateral.
Can a foreign-owned company apply to MDV?
Yes, an applicant can be 100% foreign-owned as long as the company is incorporated in Malaysia.
If I have a project that is partially completed, can I still apply for MDV project financing?
We will only be able to finance the uncompleted and unpaid portion of the project, provided that the uncompleted portion has substantial work left to complete over a reasonably long period above our loan processing duration.
Does MDV finance capital expenditure and working capital for company expansion?
Yes, we can, provided it is required in order to fulfill a contract(s), which forms the basis of the loan application to MDV.
MDV is a Premier Innovative Financier and Development Facilitator for the Information and Communication (ICT), Biotechnology, Green Technology and other emerging technology sectors in Malaysia. Incorporated on April 23, 2002 as a wholly-owned subsidiary of the minister of Finance Inc., MDV has been entrusted to provide financing for projects in these sectors at the point of commercialisation. With a fund size of RM4.1 billion, MDV offers innovative financing solutions and nurturing initiatives to spur the growth of these sectors based on client’s needs. MDV offers conventional and Islamic financing facilities.
What is project financing?
Project financing is a long term financing of projects based upon the projected cash flows of the project rather than the balance sheets of its applicants and/or contract awarders. Usually, a project financing structure involves a number of equity investors, known as ‘contract awarder’ as well as a syndicate of banks or other lending institutions that provide financing to the operations. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cashflow rather than the general assets or creditworthiness of the project contract awarders. The financing is typically secured by all the project assets, including the revenue producing contracts.
Under MDV’s project financing facility, MDV provides project financing of up to 85% of the value of contract for the project or 100% of the project cost. The financing arrangement would cover capital expenditures, working capital including overhead cost involved for the respective project.
How is MDV different from other financial institutions in Malaysia?
Please refer to Our Positioning and Our Key Differences sections.
Is MDV related to MAVCAP?
Both MDV and MAVCAP are sister companies as both companies are wholly-owned subsidiaries of the Minister of Finance, Inc.MDV provides debt financing whereas MAVCAP provides equity financing, which are complementary to support the ICT ecosystem.
What is MDV’s role in nation building?
MDV’s role in nation building is to accelerate the growth of ICT, Biotech and Greentech and other high growth sectors in Malaysia. Over and above the financing support given to companies, MDV also provide nurturing support through its independent advice and guidance to assist clients in their projects, potential projects, business areas requiring additional attention and cash flow management.
The financial support and services provided to companies by MDV are more often provided to companies which would not fit the financing criteria of commercial banks and VCs.
MDV’s mission is to establish a blueprint and prove that financing the ICT industry can be a profitable business, provided a proper methodology is established and an in-depth understanding of technology and the industry is maintained.
In the medium and long run, this will inevitability encourage other financial institutions to enhance their understanding of the ICT industry and offer more of their services to ICT companies that have the capability and potential to succeed.
For Biotechnology, MDV has also allocated RM500 million worth of loans under its new financing programme to provide financial support to biotechnology companies to grow beyond the pre-commercialisation stage. Under this program, the financial support would cover the capital expenditure working capital associated with projects or contracts. This programme is also in line with the government’s National Biotechnology Policy to utilise the country’s wealth in biodiversity and providing a conducive environment for biotech-driven businesses to grow.
MDV has been entrusted to manage funds of above RM4 billion for the financing of projects in ICT, Biotechnology and Green Technology sectors
Does MDV support start-up companies?
Yes. Our consideration for start-up companies shall include the management’s track record in undertaking and successfully delivering projects.
Beyond financing, we also extend Nurturing Services to assist start-ups and SMEs to grow their business and develop entrepreneurial skills through post approval assessment and monitoring to ensure success of projects/contracts undertaken.
How much loan has MDV disbursed?
Please refer to our Loan Portfolio section.
Who are the companies that MDV has financed?
Our clients range from start-ups to SMEs to public-listed companies to government-linked companies.
What kind of collateral does MDV require?
We do NOT require hard collateral (i.e. direct change on high value fixed assets) and cash collateral. We accept Assignment of Contract Proceeds, Personal Guarantees, Corporate Guarantees, Assignment of Intellectual Property Rights, Export Letters of Credit and Debentures as collateral.
Can a foreign-owned company apply to MDV?
Yes, an applicant can be 100% foreign-owned as long as the company is incorporated in Malaysia.
If I have a project that is partially completed, can I still apply for MDV project financing?
We will only be able to finance the uncompleted and unpaid portion of the project, provided that the uncompleted portion has substantial work left to complete over a reasonably long period above our loan processing duration.
Does MDV finance capital expenditure and working capital for company expansion?
Yes, we can, provided it is required in order to fulfill a contract(s), which forms the basis of the loan application to MDV.
Extracted from Malaysia Debt Ventures http://www.mdv.com.my/en/faqs/
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