MDV to raise RM2b via sukuk by next month

It is a significant milestone as it is the firm’s maiden issuance based on its own corporate credit ratings without a govt guarantee 

by ANIS HAZIM 

MALAYSIA Debt Ventures Bhd (MDV) is expected to establish RM2 billion via bond/sukuk programme by the first quarter of this year.

Chairman Khairul Azwan Harun (picture) said the government has been supportive of MDV direction to launch the programme.

“We are ready to launch the RM2 billion sukuk programme upon getting direction from the government,” Khairul said in his opening speech during MDV 2022 New Year Address and 4th Chairman’s Quorum yesterday. 

“It is a significant milestone for MDV as it is the company’s maiden issuance based on its own corporate credit ratings without a government guarantee. 

“The funds raised from the sukuk will allow MDV to continue to finance technology-based companies that are within MDV’s financing mandate including areas that have been prioritised by the government such as digitalisation, connectivity and green technology,” he said. 

MDV is estimated to provide additional financing of up to RM6.6 billion to 330 to 660 high-impact technology companies. 

Meanwhile, he noted that MDV had established a fintech fund last year with a target fund size of RM300 million. 

“This will support the growth of fintech companies and further develop the venture capital industry in Malaysia. 

“This is indeed an important milestone in MDV’s history as we strive to become a prominent financier in the fintech ecosystem,” he added. 

For this year, the technology financier is planning to establish another fund for the agriculture sector.

“We are targeting to launch the fund this year because we view that there is a lot of modernisation in agriculture, for example, they need technology like automation,” Khairul said to the media. 

He also acknowledges that local startups in Malaysia have the ideas and expertise to modernise the agriculture sector but they lack funds. 

“So, this is why we think that we should provide the fund for our local start-ups to modernise agriculture,” he said. 

Additionally, he said that this will continue to support the nation’s technology agenda and increase the probability of success for Malaysian technology companies by providing access to financing. 

“As we all know, MDV has been mandated by the government to carry out the important task of providing financial support to technology companies and to become an enabler for the growth and progress of the tech sector in Malaysia,” he added.