MIDF collaborates with Bioeconomy Corp on new fund

  • Business
  • Monday, 16 Jan 2017

KUALA LUMPUR: Malaysian Industrial Development Finance Bhd (MIDF) has been appointed as a strategic partner by Bioeconomy Corp to manage the newly launched Biotechnology Commercialisation Fund (BCF).

BCF is a hybrid scheme of grant and soft loan amounting to RM100mil, said MIDF in a statement.

BCF is also a continuation of the Biotechnology Commercialisation Grant (BCG) introduced under the Ninth Malaysia Plan.

The fund’s aim is to support and help catalyse commercialisation activities in the nation’s bio-based industry.

MIDF said the BCF’s role is to assist the bio-based companies in their working capital requirement for the purchase of raw materials, stocks, and consumables used in the business operations with a minimum financing limit of RM100,000.

The BCF can also be used to cover legal fees, processing fees, and stamping fees disbursed in the form of grants.

As strategic partner, MIDF would be responsible for the approval and disbursement of funds to the bio-based companies referred by Bioeconomy Corp, and thereafter supervising the accounts until full repayment.

In 2012, MIDF was appointed as the outsourcing partner to manage the fund launched by Bioeconomy Corp, then known as BiotechCorp.

The BCF application priority is given to BioNexus status companies, as well as companies involved in the Bioeconomy Transformation Programme (BTP) and Bioeconomy Community Development Programme (BCDP) projects.

The Government took into consideration the long gestation period required by bio-based companies in its businesses by offering the BCF with an attractive rate of up to 5% interest, and up to 18 months grace period to ease the burden of repayment.

The BCF is offered through two schemes, namely the Business Sustenance Scheme which is a soft loan for working capital of up to RM600,000 per application, and the Bioeconomy Development Scheme, a soft loan for growth and expansion of up to RM3mil per application.

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