1. MDV as an Innovative Technology Financier
- Presented at: Moving Forward – Enabling the Growth of ICT in
Malaysia
20th June 2012

2. Contents
CONTENTS
Pre-amble Impact of MDV Programs
Section 1 Background on MDV
Section 2 MDV’s Processes and Products
Section 3 MDV Success Stories
2

3. MDV’s Achievements
MDV disbursed RM6.25 billion in financing for projects
that have employed approx. 15,000 workers, with fund
velocity of 3.7 times,
MDV financed key government e-Infrastructure, such as
ePerolehan, eTanah, eCourts, eSecurity systems, and
Defense systems
MDV has financed 300 ICT/Biotech companies, of which
approx. 72% were SMEs
The total value of business facilitated by MDV via its
programs is estimated at close to RM15 billion
3

4. Contents
CONTENTS
Pre-amble Impact of MDV Programs
Section 1 Background on MDV
Section 2 MDV’s Processes and Products
Section 3 MDV Success Stories
4

5. Section 1 About MDV
BACKGROUND
Wholly owned by the Minister of Finance Inc, Malaysia;
Started operations in 2003 with initial funding from JBIC, Japan dedicated for ICT;
Total fund size of RM 4 billion to finance ICT, biotechnology and Green energy
projects;
First-ever Lending Program in Asia developed specifically to drive the ICT,
biotechnology and green energy;
Dual Role – Innovative Financier and Development Facilitator for ICT, biotechnology
and green energy sector;
Value chain approach in financing and developing the industry.
Initial Paid-up Capital RM50 million, increased to RM100 million in 2007 and again to
RM250 million in 2010.
5

6. Section 1 Funding Sources and Lending Direction
RM1.6 Billion Term Loan RM1.5 Billion Islamic Medium Term Notes
from JBIC (iMTN)
MDV First Fund MDV Second Fund
ICT Biotech Green/Clean
ICT Sector Sector Sector Sector
MOF had approved RM2.5 billion for MDV Second
Fund of which RM1.0 billion has been drawn.
6

7. Section 1 MDV ‘s Technology Focus
2002 2008 2011
INFORMATION &
GREEN
COMMUNICATION BIOTECHNOLOGY
TECHNOLOGY
TECHNOLOGY
Technologies for gathering, Use of living organisms or Products and services that
storing, retrieving, biological techniques to (1) provide superior
processing, analysing, and provide chemicals, drugs, performance competitively,
transmitting information food and services (2) reduce or eliminate
negative environmental
impacts and (3) improve
productive and sustainable
use of resources
7

8. Section 1 When MDV can finance
MDV
Set Up (Initiation Stage)
(Loans)
Expansion Stage
Incubator Venture Capital
(Equity) (Equity) Banks
(Loans)
Commercialisation
8

9. Section 1 MDV in the Financing Ecosystem
Venture
Development
Capital
High Agencies
High Risk High Risk
Risk
Nation Building High Returns
Portfolio
Risk
Development
Low Risk FIs Low Risk
Nation Building High Returns
Commercial
Low Banks
Risk
Nation Business Profit
Building Objectives Maximisation
9

10. Section 1 MDV Processes
Pre-Assessment Pre-Due Diligence First Drawdown
Decision Documentation
& Support & Due Diligence & Disbursement
Facilities Agreement Fulfillment of CP &
Discussion & Assessment &
Approval & Security Execution of
Application Support Evaluation
Documents Security Documents
Submission of Issuance of
Disbursement
Application Letter of Offer
Time taken to process (application to decision letter):
 Standard Financing 30 working days
 Small Contract/ 14 – 21 working days
Project financing
 Special Programs 7 - 14 working days
10

11. Contents
CONTENTS
Pre-amble Impact of MDV Programs
Section 1 Background on MDV
Section 2 MDV’s Processes and Products
Section 3 MDV Success Stories
11

12. Section 2 Corporate and Organization Structure
Minister of Finance, Inc. Federal Land Commission
99.9% 1 share
Malaysia Debt Ventures Authorised Capital: RM500 million
Issued and Paid-Up: RM250 million
Berhad
BOARD COMMITTEES:
Board Financing Committee
Board Investment Committee
BOARD OF DIRECTORS
Board Risk Management Committee
Board Audit Committee
Board Procurement Committee
Md Zubir Ansori Yahaya Board Remuneration and Audit Committee
Internal Audit MD/CEO
Business & Corp Finance & Human
Asset Mgmt Legal & Sec.
Risk & Credit Mgmt Services BTA Admin Resource
12

13. Section 2 Our Criteria
• Public or private limited company incorporated in Malaysia
Eligibility • Minimum paid-up share capital of RM100,000
• Minimum five (5) employees
Criteria • No restriction on foreign shareholding
• With ICT/Biotech/ Green/Clean Tech contracts (local & foreign)
• Loan Size - financing up to 85% of contract value or total project cost,
with loan size up to RM120 million
Application • Loan Tenure - Repayment period between 1, 5, 10 years
• Loan Repayment - Flexible repayment terms that are aligned to the
Criteria cash flow of your project
• Collateral - Do NOT necessarily require hard and cash collaterals
• Equity Structure - NO specific requirement
• Management Risk
• Technical Risk
Evaluation • Financial Risk
Criteria • Legal Risk
• Collateral Risk
• Performance Risk
13

14. Section 2 What MDV Currently Offers
• MDV Revolving Project Loans are structured to finance implementation of contract-
backed projects to deliver ICT, Biotech and Green Tech as well as high-growth
REVOLVING solutions.
PROJECT LOANS • Up to 85% of the value of the contract, or total cost of project, can be financed.
• Loan sizes from RM2 million up to RM50 million can be considered, with repayment
periods of between up to 5 years (ICT) and 10 years (Biotechnology/GreenTech)
OPEN-ENDED • MDV Open-ended Project Loans are structured to finance exceptional open-ended
(i.e. non contract-backed) projects, where likelihood of achieving project success
PROJECT LOANS and profitability is high.
• Include Build-Own-Operate (BOO) Build-Operate-Transfer (BOT), Concession etc
PARTNER BANK • MDV Partner Bank Facilities involve provision of guarantee (bank/ performance etc.
and trade facilities (letters of credit) by Partner Banks, fully backed against MDV's
FACILITIES guarantees.
• These facilities complement the Project Loans provided directly by MDV.
• Loan sizes from RM250,000 up to RM2 million can be considered, depending on
risk profile, with repayment periods of up to five years
• MDV Small Contract/ Project Financing is designed and customized for companies
SMALL CONTRACT with ICT, Biotech and GreenTech contracts/projects from Government, MNCs, etc
FINANCING or have a commercialized product serving a ready market.
• Approval within 14 to 21 days
• Financing up to 85% of contract value
• Fixed interest rate of between 6 to 8% p.a. on daily rest and flexible repayment
14

15. Section 2 How MDV Finances Contracts
3
Project
Deliverable
2
PROJECT/
SPONSOR CONTRACT Customer
1
5
6
4
Sponsor awards contract/project to Customer; Project/Contract Sponsor remits Contract Payment as
1 4
Contract Proceeds is assigned to MDV Loan Repayment
Financing of total project cost up to 85% of Contract
2 5 Customer receives partial contract payment
value
Customer receives balance contract payment when
3 Customer completes and delivers ICT project/contract 6
loan repaid
15

16. Section 2 MDV-MSC Malaysia ICT Adoption Program
16

17. Section 2 Financing Tracks
Customer Vendor
Financing Financing
MDV will finance MDV will extend
the customers of FINANCING working capital
MDV’s pre- financing to the pre-
identified panel of TRACKS identified panel of
ICT service/ product ICT service/ product
providers (viz. MSC providers identified
Companies in collaboration with
identified in MDEC
collaboration with
MDEC); and
Vendor Financing
17

18. Section 2 SME Eligibility
• An SME incorporated under the Companies Act 1965 in
Sdn Bhd the eligible sectors (TRACK 1 ONLY)
Selected • Pre-identified panel of ICT service/ product providers
MSC Companies identified in collaboration with MDEC
Procure • For Eligible SMEs to procure, install and/or commission
IT Systems products and services of eligible IT systems
• SME definition as per National SME Development
Company Council;R M100,000 minimum share capital; minimum of
Requirements five (5) full-time employees; 51 % Malaysian
shareholding
• Minimum of three (3) years operating track record;
Financial
growth in turnover and profitability in past 3 years;
Requirements positive NTA in 3 years
• Fixed charge on assets financed; Debentures; Corporate
Collateral
and Directors guarantee; Assignment of medium/long-
Requirement term contract proceeds
18

19. Section 2 Vendor Financing Option for MSC Malaysia Status Companies
Customer purchases
products/ services from MSC
Malaysia status company
on cash basis (financed by
MDV)
MDV provides financing for
purchase of MSC Malaysia
MSC Malaysia status company
status company products/
sells products services to
services by customer
customers on cash basis
Customer
Customer repays financing
to MDV on deferred basis
with interest/ profit
19

20. Section 2 What MDV Currently Offers
• A special financing scheme in collaboration with Telekom
SPECIAL PROJECT Malaysia for its HSBB vendors
FINANCING • Loan size from RM250,000 to RM5 million
PROGRAMS • Approval within 7 days
• Financing up to 85% of contract value and a financing period of
TM JKH VENDOR up 5 years.
FINANCING • Profit rate of 6.75% per annum, on daily basis and flexible
repayment periods
• A special financing scheme extended to companies that have
secured government ICT/ ICT related/ BioTech or Green Tech
SPECIAL PROJECT projects
FINANCING • Loan Size up to RM5million
PROGRAMS • Approval within 14 days
GOVERNMENT DIRECT • Financing up to 85% of contract value and a financing period of
CONTRACT up 3 years.
• Profit rate of 6.75% per annum, on daily basis and flexible
repayment periods
20

21. Section 2 What MDV Currently Offers
• A special financing scheme to promote Bumiputera uptake in the
SPECIAL PROJECT industry.
FINANCING • In collaboration with MOSTI and Biotech Corp
PROGRAMS • Total Loan Size : RM20million (as at 31st July, MDV approved
BUMIPUTERA RM18.35mil)
BIOTECHNOLOGY & • Loan size up to RM5 million
BIO-INDUSTRY • Financing up to 85% of contract value and a financing period of
DEVELOPMENT FUND up 5 years.
(B3DF) • Profit rate of 3% per annum, on daily basis and flexible
repayment periods
• A special financing scheme extended to early stage and/or pre-
SPECIAL PROJECT commercialise companies
FINANCING • In collaboration with MOF Inc.
PROGRAMS • Total Loan Size : RM12 million (2011) and RM28 million (2012)
• Loan size up to RM2 (Venture Project Line) and up to 5 million
(Asset Project Line, Working Capital Project Line and Contract
RMK10 PRE- Project Line/Small Contract Project Line
COMMERCIALISATION • Financing up to 85% of contract value and a financing period of
FINANCING up 5 years.
• Profit rate of between 6 to 8% per annum, on daily basis and
flexible repayment periods
21

22. Section 2 Differences with Banks
BANKS MDV
 Rates – Risk Based  Rates – Risk Based
 Variable Rates - COF or BLR based  Fixed Interest Rates (7% to 8.5% p.a.)
 Collateral  Collateral
- Hard Collaterals (All) - Hard Collaterals (Selective)
- Soft Collaterals - Soft Collaterals
- CGC Guarantees  DD based on 5 key areas
 DD based on 5 Cs of Credit - Management
- Character - Technical
- Capital - Legal
- Capacity - Financial
- Collateral - Collateral
- Conditions  Sectoral exposure
 Sectoral exposure - Emerging sectors
- Matured sectors  Source of Funds
 Source of Funds - Capital Market
- Deposits - Govt. of Malaysia
 Payment terms  Payment terms
- Accrual interest - Upfront interest
- Scheduled payment - Cash flow based payment
 Fees & Charges  Fees & Charges
- Profit motive - Cost recovery
22

23. Section 2 Who and What MDV Finances
• All Costs (equipment/infrastructure/hardware, software, operational
costs) directly incurred for the project
What MDV
• Up to the lower of 85% of the contract value or Actual Cost
Finances
• Projects should be Malaysia-centric. Financing of overseas project
subject to MDV overseas financing guideline
• Malaysian companies that PROVIDE high value added technology
solutions
Who MDV • Malaysian companies* that PROCURE high value added technology
Finances solutions
• Malaysian companies* that PROVIDE GOODS to technology
companies for producing high value added technology products
23

24. Contents
CONTENTS
Pre-amble Impact of MDV Programs
Section 1 Background on MDV
Section 2 MDV’s Processes and Products
Section 3 MDV Success Stories
24

25. Section 3 MDV Portfolio by Sectors
Total MDV Portfolio based on ICT, Biotechnology and Renewable Energy
sectors
RM870,642,991.88 RM67,734,231.20
88% 7%
RM55,308,375.73
5%
Biotechnology Information technology and services Renewable Energy
25

26. Section 3 MDV Role – Innovative Financier
ICT Sector
• Sectors supported include Communications/Network Media; Electronic/Semi-
Conductor; Application, Content & Multimedia; Internet; and IT
• As at 31 January 2012, MDV approved 462 applications comprising 304 ICT
companies cumulatively since 2003, totaling RM4,890 mln
Biotech Sector
• Sectors supported include Natural Products; Medical Devices/Diagnostics;
Contract Manufacturing/Research; Industrial Biotechnology; Bio-Informatics
• As at 31 January 2012, MDV approved 35 applications comprising 30 Biotech
companies cumulatively since Biotech Product launch in May
2008, totalingRM313 mln .
Green Tech Sector
• Sectors supported include Energy Generation/ Storage /Infrastructure/ Efficiency;
Transportation; Water & Wastewater; Air & Environment; Recycling & Waste;
Materials; Agriculture & Manufacturing/ Industrial
• As at 31 January 2012, MDV approved 12 applications comprising of 11
companies, totaling RM136 mln
SME ICT & Biotech Sector
• MDV launched Small Project Financing Facility (loans < RM2 million) in July
2007, providing approval within 14 days.
• Since inception up to 31 January 2012, MDV approved more than 243
applications cumulatively since 2003, totaling more than RM78 mln
26

27. Section 3 A Sample of MDV Achievements & Success Stories
AQUARIA KLCC eTANAH
Wireless Broadband ePEROLEHAN DIGITAL CONTENT
WORLD-CLASS AQUARIUM INTEGRATED LAND
WIMAX WIRELESS BROADBAND GOVERNMENT GLOBAL COMPUTER AND VIDEO
WITH 95,000 VISITORS MANAGEMENT SYSTEM FOR
WITH 350,000 SUBSCRIBERS ePROCUREMENT SYSTEM GAME DEVELOPMENT
MONTHLY LAND OFFICES
Transportation ePurse
DATA CENTERS media infrastructure company IT IS MAMPU
AUTOMATED REVENUE
DATA CENTERS AND IP INDOOR DIGITAL MEDIA (IDM) MALAYSIA-WIDE TRAFFIC DEVELOPMENT OF
COLLECTION, AND ePAYMENT
TRANSIT SERVICE FOR BANKS AND GOVT OFFICES MANAGEMENT SYSTEM GOVERNMENT’S ICT SECURITY
SYSTEMS
Advanced Telecoms Infra PRS (Police Reporting System)
Digital Content Biomass Energy 3D ANIMATION
ADVANCED COMMUNICATION AUTOMATION OF POLICE
3D ANIMATED FEATURE FILM BIOMASS-BASED BOILER ‘UPIN & IPIN’ AND ‘GENG:
TECHNOLOGIES AND PUBLIC COMPLAINTS
‘RiBBIT’ SYSTEMS FOR ALL SECTORS PENGEMBARAAN BERMULA’
SOLUTIONS REPORTING STRUCTURE
Semi-Conductor GOVERNMENT SYSTEMS VSAT Communications Mobility/ID Authentication Military Flight Sim
MANUFACTURING OF ICs FOR FINANCIAL MANAGEMENT PROVISION OF VSAT SMARTCARD AND FLIGHT SIMULATOR AND
SEMI-CONDUCTOR INDUSTRY SOLUTION SOFTWARE TECHNOLOGY & SOLUTIONS BIOMETRICS VERIFICATION MISSION CONTROL SYSTEMS
DEVICES
27

28. MALAYSIA DEBT VENTURES BERHAD (578113-A)
Level 5, Menara Bank Pembangunan,
1016, Jalan Sultan Ismail,
50250 Kuala Lumpur.
General Line: +60 3 2617 2888
Fax : +60 3 2697 8998
Email: info@mdv.com.my
URL: www.mdv.com.my
Thank you