700 firms get mdv financing amounting to rm11.2b

Kuala Lumpur: Malaysia Debt Ventures Bhd (MDV) has to-date financed over 700 companies with disbursements amounting to RM11.2 billion since its inception in 2002 to enable them to complete and deliver more than 800 projects in various technology areas. Its Chairman, Tan Sri Zarinah Anwar, said small and medium enterprises (SMEs) remained the primary recipients of the funding, making up 82 per cent of its cumulative portfolio, while 73 per cent of its customers consisted of Bumiputera-owned technology companies.

"Through sheer commitment in helping bridge the financing gap which exists within the entrepreneurial ecosystem, MDV is able to play a pivotal role in the development of Malaysia's information and communications technology, biotechnology, green technology and other high-growth and value-added emerging technology sectors," she told reporters here on Wednesday after the launch of MDV's Islamic Venture Financing Programme, a shariah-compliant financing programme.

Zarinah said this transition from providing a traditional mode of debt financing to offering what was possibly the first Islamic venture financing in the world would pave the way for MDV to become a regional leader in venture finance.

"Together with its RM1.0 billion third fund, which was implemented late last year, this programme would ensure that MDV will be able to continue lending its assistance to high-potential technology firms in Malaysia, providing further impetus towards the realisation of Malaysia's aspiration in achieving a high-income nation status by 2020 and as it strives towards implementing the new Transformasi Nasional 2050 plan," she said.

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She said venture financing would be a major boost to the funding ecosystem for technology start-ups in Malaysia and that MDV addressed a very real gap in the market.

She said the ticket size offered under this new programme was capped at US$4.5 million (US$1 = RM3.92) and the tenure of the financing could be up to five years, depending on the applicant's financing requirement and stage of development.

"As Malaysia is home of the world's largest Islamic finance industry, MDV's venture debt offering has been tailor-made to be in the form of a shariah-compliant financing while benchmarking it against venture debt models currently used by more developed markets.

Present to launch the Islamic Venture Financing Programme, Treasury Secretary-General Tan Sri Mohd Irwan Serigar Abdullah said while venture debt was a new concept in Malaysia, it has the potential to be popular as more start-ups sought alternative to fund their growth.

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"There are currently 250 venture capital-backed companies in Malaysia, and 215 of these have at least raised a Series A round.

"These will form a solid pipeline for MDV to extend its programme and facilitate the success of these companies," he added. –Bernama

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