MDV approves RM912m for 64 green tech companies

The financial institution has funded more than 38 projects worth RM381m under the green technology sector


MALAYSIA Debt Ventures Bhd (MDV) has approved RM912.4 million worth of allocation to fund 64 Malaysian green technology companies under the Green Technology Financing Scheme (GTFS), thus becoming the highest financier and one of the largest commercial banks in Malaysia when it comes to green technology financing.

MDV chairman Khairul Azwan Harun (picture) said the financial institution has funded more than 38 projects worth RM381 million under the green technology sector in Malaysia.

From that total amount, RM255 million is used to fund renewable energy projects, RM82.5 million is allocated for energy-efficiency projects, while RM43.1 million is used for various related green projects. He also said only a total electrical capacity of 152MW have been generated from biogas, biomass, mini-hydro and solar-based power stations for MDV’s entirely funded projects.

“MDV will remain consistent in its efforts to support the Malaysian green technology industry and continue to commit in raising funds to support our financing programmes,” Khairul Azwan said in a statement yesterday.

He said MDV is currently in the process of launching a sukuk programme worth RM2 billion this year to support its financing assistance for the next five to seven years.

“The new sukuk programme has already been approved by the Ministry of Finance (MoF) and in the third quarter of this year (3Q21), part of it will be commenced,” he said.

Apart from funding green projects under the GTFS scheme, MDV has also introduced the Energy Performance Contracting Fund (EPC) scheme for energy service companies which are involved in the implementation of energy efficient programmes in the construction sector.

This effort is to increase financing in the energy efficiency sector, as well encourage the implementation of energy efficiency projects in the country.

“The EPC programme has been introduced by MDV in collaboration with the Energy and Natural Resources Ministry (KeTSA), where MDV will provide principal financing to borrowers, while the government through KeTSA will subsidise non-principal financing costs such as guarantee costs to ensure borrowers receive easier loans at a more competitive and reasonable cost,” he added.