07-05-2008 - KUALA LUMPUR: Malaysia Debt Ventures Bhd (MDV) has introduced its new financing programme that will offer between RM2 million and RM120 million revolving project loans to companies in the life sciences sector.“This year, our target is to achieve RM200 million in loan approvals between now and March 2009,” said MDV chief executive officer Zubir Ansori Yahaya at the launch of the fund here yesterday.
The new loan programme offers financing margins of up to 85% of the contract value at between 6% and 8% interest per annum, calculated on a daily basis. Funds can be used for equipment and infrastructure, working capital and contracts.
The launch of the programme marks MDV’s foray into the biotechnology sector — an area that it has been prevented from funding earlier due to terms set in the first Japan Bank of International Cooperation (JBIC) loan.
Taking into consideration the longer gestation period and lead-time required to grow biotechnology companies, the programme allows loan tenures of up to 120 months and an 18-month payment grace period, Zubir said.
Instead of hard assets, MDV lends money on soft collaterals like debentures, director’s guarantee, assignment of contract proceeds and intellectual property.
Zubir added that MDV was already looking at five deals worth RM40 million and he expected funds for the first approved company to be disbursed by June.
The programme will focus on six areas of biotechnology — natural products, medical devices and diagnostics, contract manufacturing, contract research, industrial biotechnology and bio-informatics.
“These are areas that are consistent with the National Biotechnology Policy and areas that leverage on Malaysia’s existing strength,” said Zubir.
Wholly owned by the Ministry of Finance, MDV has been allocated a total of RM4.1 billion under the Eighth and Ninth Malaysia Plans.
Adapted from TheEdgeDaily