Malaysia Debt Ventures plans to issue bonds next year

BUTTERWORTH: Malaysia Debt Ventures Bhd (MDV) plans to issue bonds next year to reduce its dependency on government guaranteed loans.

“We are getting ratings for our bonds soon from a local rating agency.

“The objective is to issue bonds based on stand alone ratings to raise our own funds and reduce dependency on government guaranteed loans,” MDV chief executive officer Nizam Mohamed Nadzri said.

He spoke at a MDV’s client engagement programme.

Also present was MDV chairman Datuk Seri Lee Kah Choon.

Nizam said currently MDV had about RM270mil, sufficient to fund some 50 companies until next year.

“We have loan out since 2002 RM11.7bil for 800 companies, comprising largely small and medium size enterprise, and we have gotten back about RM9bil in reimbursement.

“There’s still a principal sum of about RM1.5bil still owed to us by 180 companies,” he added.

Meanwhile, Lee said MDV was targeting companies involved in renewable energy, ICT, and emerging technologies to take up loans from MDV.

“As an organisation, MDV has the flexibility to understand the problems and risks of financing technology projects and develop programmes to fund high risk projects by establishing appropriate credit assessment methodologies.

“Financing provided by MDV together with government incentives specifically tailored for energy service companies can steer the implementation of energy efficiency project in the building sector and spur sustainable technology growth in the country,” Lee said.

Lee added that MDV’s financing exposure to the energy efficient sector to-date stands at RM99.1mil as more focus and emphasis was placed on the green technology and energy efficiency sector.

MDV is an MOF Inc company mandated to provide project and financing facilities to technology companies.

It provides innovative financing solutions for the needs of technology projects, customising the loan and financing structure to the contract requirements.