MDV Launches New Financing Programme for Biotechnology

KUALA LUMPUR, Tuesday, 6 May 2008 : Malaysia Debt Ventures Berhad ('MDV'), a wholly-owned subsidiary of the Minister of Finance, Inc. incorporated to be a financier and development facilitator of Information and Communication Technology (ICT) and high-growth sectors today announced its new Financing Programme for Biotechnology to support the emerging biotechnology industry in Malaysia.

Officiated by the Deputy Minister of Finance, YB Dato' Haji Ahmad Husni Mohamad Hanadzlah, the launch introduced MDV project financing facilities exclusively for biotechnology companies growing beyond the pre-commercialisation stage, encompassing the funding of the sector's Equipment & Infrastructure, Working Capital, and Project/Contract received.

Encik Md Zubir Ansori Yahaya, Managing Director and Chief Executive Officer of MDV said that the launch of the programme was timely in accordance to the growing socio-economic and economic value of biotechnology research.

"Biotechnology is not merely a key driver for innovation and knowledge creation but an impetus for change. Its true value lies in its capacity to alleviate the biggest challenges faced in the world today, be it curing ravaging diseases, solving world hunger or creating sustainable energy. Unlike other financing institutions, MDV is in a unique position to drive the industry forward and it is only appropriate that we act on it now," he said.

With the new loan facility, eligible companies will be able to receive revolving project loans of between RM2 million to RM120 million with financing margins of up to 85 per cent of the contract value and loan tenure periods of up to 120 months.

Financing rates will be between six per cent to eight per cent per annum for the duration of the loan period, calculated on a daily basis and no penalties will be imposed for early repayment.

MDV employs a loan process model made simple for borrowers; taking no more than 45 working days from the date of submission of completed documents. The company also prefers director's guarantee, assignment of contract proceeds and debentures instead of the conventional hard asset collateral as preferred by financial institutions.

"At MDV, we go beyond financial accessibility and provide value-add advisory services to customers. While we want to partner our customers' at every stage of development, our philosophy is to ensure that they maintain full ownership of their businesses,"added Zubir.

MDV's new Financing Programme for Biotechnology is in tandem with the government's National Biotechnology Policy to utilise the country's abundance of wealth in bio-diversity and providing a conducive environment for biotech-driven businesses to flourish.


www.mdv.com.my

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