Issuance of RM270 million tranche from RM1 billion government guaranteed iMTN programme

KUALA LUMPUR: Malaysia Debt Ventures Berhad (MDV) has recently raised RM270 Million via an Islamic Medium Term Notes (iMTN) issuance under its existing RM1 billion Sukuk Murabahah Programme (Third Fund).

Launched in 2017, The Third Fund furthers MDV’s ongoing mandate from the government to support development of the Nation’s ICT, Green Technology and Emerging Technology sectors via innovative financing.

This represents a continuation of MDV’s initiatives from its previous funds.

Fully guaranteed by the government of Malaysia, and with a total drawdown of RM 500 million to-date, The Third Fund also aims to increase awareness of the socio-economic benefits of Islamic financing while at the same time expanding MDV customers’ financing options to meet their growth requirements.

Much like its first issuance of RM230 million in September 2018, the recent approval from the Ministry of Finance for this second drawdown from the third fund further illustrates the government’s continuing support and commitment towards developing the country’s technology sector and MDV’s effort to provide flexible and innovative financing facilities.

It is envisaged that this financing will foster the expansion of high-value start-ups and early stage companies from highimpact technology sectors of the economy, thus catalysing the development and advancement of the country’s technology sector.

As a technology financier, this issuance of RM270 Million proves MDV’s commitment of filling the financing gap faced by technologybased Small and Medium-Sized Enterprises (SMEs).

These companies are generally underserved by traditional financial institutions due to their lack of business assets and track record.

To date, MDV has financed 760 companies and made more than RM 11.7 Billion disbursements from its First and Second Funds.

MDV has fully repaid its first fund from the Japan Bank for International Cooperation of RM 1.6 Billion, and is making scheduled payment of its RM 1.5 Billion iMTN. The second fund is scheduled to be fully paid by 2023. — Bernama