The Energy Performance Contacting (EPC)
Fund by Malaysia Debt VenturesBSEEP National Conference 2017
Thursday11 May 2017
1
5.4%Gross Impairment
3.3x Multiple of Fund Velocity
738Credit Lines
78%Tech-based SMEs
68%Bumiputera
ABOUT MDV – TRACK RECORD
Since 2002, consistent with our mandate, MDV provided credit and financing facilities for Growth, SME and Midsized technology companies and
projects in ICT, Green Technology, Biotechnology and Emerging Technology
25,800Employment in Funded Companies
RM3.1B Aggregate Fund Size
RM10.6BDisbursements
RM8.4BRepayments
565Companies Approved
Note: MDV Financing Programmes supplemented by Direct Government Funding for Early/Startup Companies under B3DF, Commercialisation Fund and MDV TACT
2 ABOUT MDV – TECHNOLOGY FOCUS
VISION
MISSION
To be a World Class Premier Innovative Financer and Development Facilitator of
Information And Communication Technology (ICT) and High-Growth
Sectors
Accelerate the process of ICT
assimilation for higher efficiency and
productivity in Malaysia by:
⁻ Nurturing ICT companies through
timely financial and business
advice, and ongoing cooperation
and collaboration
⁻ Narrowing “digital divide”
between regions and
internationally, by facilitating the
development of the ICT market,
and financing appropriate ICT
companies
⁻ Transferring knowledge to local
financial institutions and ICT
companies, to enable them to be
self-sustaining
2002
VISION
MISSION
To Be A World Class Premier Innovative Financier and Development Facilitator of Information and Communication Technology (ICT) and High-Growth
Sectors
Accelerate development of ICT and
Biotech in Malaysia by
⁻ Providing innovative financing
solutions
⁻ Nurturing and supporting
companies thru timely
business advice and ongoing
cooperation and
collaboration
⁻ Supporting the Government
in accelerating national ICT
and Biotech agenda
2002-2006
VISION
MISSION
To Be The Premier Innovative Financier and Development Facilitator of ICT, Biotechnology and Other Emerging
Technology Sectors
To spur the growth of ICT,
Biotechnology and Other Emerging
Technology Sectors in Malaysia
through innovative financing and
nurturing initiatives
2007-2013
VISION
MISSION
The Nation’s leading technologyfinancier
i. To support the Nation’s
technology agenda and
increase Malaysian
technology companies’
probability of success through:
⁻ Innovative and flexible
financing solutions
⁻ Specialized funding
programs
⁻ Industry expertise and
advisory services
⁻ Nurturing young
companies
ii. To remain financially
sustainable while fulfilling our
developmental role
PRESENT
Beginning with supporting National ICT Agenda and MSC Initiative and Addressing Funding Gaps then, MDV extended its lending and financing capacity to fund new technology areas identified by the Government
ICT Technologies for gathering, storing, retrieving, processing, analyzing, and transmitting information
Biotechnology Use of living organisms or biological techniques to provide chemicals, drugs, food and services
GreenTech Products/Services that (1) provide superior performance competitively, (2) reduce/ eliminate negative environmental impacts and (3) improve productive and sustainable use of resources
Technology All High value & high impact technologies with focus on promoted sectors
3
B5 and B6 Credit Rating and Sub-RM30 million significant composition of Loan and Financing Portfolio, supported by Better Rated Credit and Large Loans and Financing (>RM30 million)
RM10 mil and below (114 customers),
RM520.4 , 33%
> RM10 mil to 30 mil (35 customers) , RM451.2 , 29%
> RM30 mil to RM50 mil (6 customers),
RM184.8 , 12%
> RM50 mil to 75 mil (11 customers),
RM226.8 , 14%
Above RM75 mil (2 customers),
RM185.6 , 12%
PORTFOLIO CONCENTRATION (By Loan Outstanding)PORTFOLIO CONCENTRATION (By Sub-Sector)
PORTFOLIO CONCENTRATION (By Exposure)
ABOUT MDV – FINANCING PORTFOLIO
B2 (3 customers), RM47.5 , 3%
B3 (4 customers), RM134.7 , 7%
B4 (14 customers), RM235.9 , 13%
B5 (37 customers), RM284.1 , 15%
B6 (105 customers), RM870.5 , 47%
B7 (18 customers), RM195.3 , 10%
B8 (9 customers), RM72.1 , 4%
B9 (2 customers), RM24.8 , 1%
PORTFOLIO CONCENTRATION (By Credit Grading)
4 ABOUT MDV – PRODUCTS & PROGRAMMES
Project-based Loan Project Financing (Term)
Promote the assimilation of ICT in every sector of the economy
INITIAL PRODUCT PRESENT
Our Financial Products and Programmes expanded to meet Market and Customer requirements, covering industry segments, stage of development and project needs
Export Finance
Promote export of Malaysian ICT solutions overseas
Bank Guarantee
Provide performance guarantees
Project Financing (Revolving)
Conventional Loan
SME Project/Contract Financing
MOF Green Lane Programme
MY2GEN Programme
Equity-Linked Financing
Convertible Financing Programme
GreenTech Financing Scheme
i-Factoring Commercialisation Fund (RMK10)
MPV TACT (RMK11)
Bumiputera Bio Development Fund
IP Financing Scheme
TM JKH Financing Programme
Trade Facilities/Bank Guarantee
PRODUCTS PROGRAMMES
5
Energy Efficiency Projectsinvolve the retrofitting of building systems such as chillers, lighting systems, air-conditioning and ventilation, building control systems as well as passive building features such as window tinting
Savings that EE projects generate are used to cover the entire cost of the investment, including the necessary returns and financing costs. Surplus savings are allocated between the contracting organizations/ building owner and the ESCO as stipulated in the contract.
EPC FINANCING MODEL
FINANCIER
1Building owner awards contract/project to ESCO. Contract Proceeds is assigned to MDV
3 ESCO completes and delivers project/contract
4Building owner remits Contract Payment as Financing Repayment
6ESCO receives balance contract payment when loan repaid
5 ESCO receives partial contract payment 2Financing of total project cost up to 85% of Contract value
ESCO BUILDING OWNER
1
2
3
4
5
6
LOAN
REFUND
CONTRACT BALANCE
EXECUTION
CONTRACT
PAYMENT TOMDV
6 EPC FINANCING PROGRAMME PARTNERS
Comprehensive programme components developed to provide credit financing to ESCOs to implement EE and energy savings-based projects (“ESP”)for owners of existing end-use energy consuming facilities where ESPs are installed
Fund for Credit Guarantee Cover to enhance the credit
profile of financing applicants
Provide an interest rate subsidy of 1% per annum to
successful applicants.
To provide up to RM200 million in financing and manage
the financing program
ESPs are a cost-effective medium-term option for meeting increasing energy needs, enhancing energy security and the mitigating need for new electricity generation capacity with reduction of greenhouse gas emission
7 EPC FINANCING FINANCIAL INCENTIVES
FUNDING FOR CREDIT GUARANTEE COVER
INTEREST RATE EQUALISATION
1
2
To promote financing accessibility, KeTTHA and JKR established fund to pay for credit guarantees from CGC for up to 80% on the unsecured portion up to the maturity date of the term loan facility with ceiling of RM3 million cover. Guarantee fees are expected to range from 3.5% to 4.0% p.a.
To reduce he financing burden on ESCOs, KeTTHA will provide additional funds for 1% p.a. rate subsidy. The targeted financing tenure under the scheme is 5 to 7 years. 1
KeTTHA and BSEEP provide RM12 million to fund credit guarantees for EPC financing.
2KeTTHA provides funds to re-profile EPC financing rates from 8% pa. to 7% pa.
3MDV manages both funds to secure guarantees and reprofile financing rates.
& 4
ESCO
EPC CONTRACT
DELIVERY OF CONTRACT
BUILDING OWNER
RATE RE-PROFILING
4
PAYMENT OFGUARANTEE FEE
CREDIT GUARANTEE COVER
3
4
8 EPC FINANCING FEATURES, CRITERIA & ELIGIBILITY
TERM, REVOLVING AND TRADE FINANCING FACILITIES AVAILABLE @ 7% p.a. FINANCING RATE
KEY PROGRAM FEATURES
FINANCE PROJECT INPUTS OF NEW PROJECTS WITH UP TO 85% FINANCING MARGIN
FINANCING TENURE OF UP TO 10 YRS BUT NO LONGER THAN PROJECT TENURE
FINANCING SIZE RESTRICTED TO RM15 MILLION
KEY PROGRAM CRITERIATO BE UTILIZED BY SME ESCOs (COMPANIES ONLY) FOR RETROFITS
FOR SINGLE BUILDINGS OR BUILDING COMPLEXES LOCATED IN MALAYSIA
PROJECTS MUST HAVE IGA (BY ST REGISTERED ELECTRICAL ENERGY MANAGER) AND EFFECTIVE M&V PLAN WITH M&V PROCESS
ESCO APPLICANT MUST BE REGISTERED WITH ST
KEY FINANCING CRITERIA
PRINCIPAL SECURITY IS ASSIGNMENT OF PROJECT EARNINGS & OTHERS AS REQUIRED
MINIMUM 5 FULL-TIME STAFF
MINIMUM RM100,000 PUC
SATISFY MDV’S MINIMUM CREDIT REQUIREMENTS
SATISFY CREDIT CHECKS – COMPANY & DIRECTORS
VIABLE PROJECT
CAPABLE MANAGEMENT TEAM
Thank you
MALAYSIA DEBT VENTURES BERHAD
Level 5, Menara Bank Pembangunan,1016 Jalan Sultan Ismail Kuala Lumpur
General Line: +60 3 2617 2888Fax: +60 3 2697 8998Email: [email protected]:
www.mdv.com.myFacebook: Malaysiadebtventures
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