Malaysia Debt Ventures to Raise RM 2 Billion Through Bond and Sukuk Issue in November | Money
PETALING JAYA, October 27 – Malaysia Debt Ventures Bhd (MDV) plans to raise RM 2 billion in the capital market through a bond / sukuk issuance program next month.
President Khairul Azwan Harun said MDV has moved away from government guaranteed bonds and sukuk since its inception in 2002, as part of its funding diversification strategy to increase its funding capacity, ensure liquidity and long-term self-sufficiency.
“This will be MDV’s fourth fund, which also marks our first fund to be raised based on our stand-alone credit rating,” he said at a press conference titled “Driving Post-Pandemic Growth of the technology sector ”here, today.
The RM 2 billion bond / sukuk financing is among the five key MDV initiatives the company is taking to strengthen its role in developing the technology (tech) sector.
As one of the immediate initiatives, said Khairul Azwan, MDV will extend the moratorium for affected clients including startups and small and medium enterprises (SMEs) to resume operations and regain operational stability.
“We are going to look at the level of difficulty of each company / startup. It can take three or six months or up to 12 months… it depends, ”he said.
He said that MDV has taken three moratorium measures and that so far the implementation of the moratorium since the Movement Control Order (MCO) in 2020 has benefited 66 companies with total carry-overs of 134 million. RM including principal and profit payments.
MDV also last year introduced the Cash Funding Facility for Tech Startups (LIFTS) (formerly TAFRF), which is a special RM100 million program for tech companies hard hit by Covid-19, supporting short-term corporate liquidity. flow problems.
“So far, MDV has approved funding of over 74 million ringgit for 64 companies and disbursed 33.50 million ringgit to 35 companies in various technology sectors under this program,” said Khairul Azwan.
Elaborating on the matter, MDV chief executive Nizam Mohamed Nadzri said the company has also offered to expand the program to LIFTS 2.0 with an additional RM100 million fund to help eligible startups and SMEs to get started. develop and develop plans to achieve their post-pandemic growth potential. .
He said LIFTS 2.0 will keep an interest rate threshold low and funding will be capped at RM 10 million per applicant.
Meanwhile, as a provider of venture capital finance for venture capital (VC)-backed startups, Nizam said MDV has received approval from the finance ministry to set up a venture capital firm. (VCC) and a venture capital management company (VCMC).
This will allow MDV to create better funding opportunities for startups and early stage technology companies, typically between the start-up and Series A funding cycle.
“Another initiative is to establish a National Technology Funding Center at Malaysia Technology Park, where this will be our new headquarters.
“We anticipate that the hub will also function as a center of excellence for venture capital funding and provide support for infrastructure such as research, training centers, etc., which will help strengthen the startup ecosystem. in Malaysia, ”he said. – Bernama