KUALA LUMPUR: Malaysian Debt Ventures (MDV) Bhd plans to finance green and clean technology business ventures in an effort to create a viable growth area for the country.
MDV managing director and chief executive officer, Md Zubir Ansori Yahaya said it is seeking the approval of the Ministry of Finance (MoF) and expects to get a response by year end.
“It is a new growth area that not many financial institutions are prepared to fund it so we want to be the first,” he said at a press conference after attending its Fifth Business and Technology Speakers’ Series.
MDV, an ICT (information communications technology) and biotech industry financier, said this will also complement the Energy, Green Technology and Water Ministry’s effort.
The ministry has allocated about RM1.5bil under the Green Technology Financing Scheme to develop products for the green technology sector.
Zubir said MDV will be setting up a team of green technology experts to help MDV better understand the needs and challenges facing this sector.
MDV also plans to look into convertibles bonds to give it more leeway to invest in high risk areas within the volatile ICT and biotech sectors, where borrowers usually have big ideas but not strong collateral.
This method, which is currently used by foreign debt venture companies, will allow MDV the option to convert debt ventures into warrants when it benefits MDV.
More details will only be revealed once the MoF approves MDV’s plan, he said.
“Conventional lending methods do not work in this new economy and that’s why we’re looking for better ways to do so,” he said.
Since its inception in 2006, MDV has financed 225 ICT and biotech companies, of which 68% are small and medium sized enterprises. — JO TIMBUONG
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