The Star, Wednesday May 7, 2008

MDV loans for biotech firms

KUALA LUMPUR: Malaysia Debt Ventures Bhd (MDV) aims to approve RM200mil in loans for its latest product, aimed at supporting biotechnology industry in Malaysia, during its current fiscal year ending March 31, 2009.

MDV was allocating RM500mil for biotechnology and had lined up five related ventures for RM40mil worth of loans, said managing director Mohd Zubir Ansori Yahaya.

“We expect the first loan to be approved by end June,” he said after the launch of the new financing facility by Deputy Finance Minister Datuk Ahmad Husni Mohamad Hanadzlah yesterday.

A subsidiary of Minister of Finance Inc, MDV is a debt-financing vehicle for mainly information and communications technology firms.

The move into the biotechnology sector could not have been more timely for MDV, said Zubir.

“Biotechnology is not merely a key driver for innovation and knowledge but an impetus for change,” he said, adding that the industry in Malaysia was still at its infancy stage.

“We are still playing catch-up to the US and Europe where biotechnology has grown by leaps and bounds. To date, there are 56 biotechnology companies in Malaysia and about 2,000 in the US.”

Zubir said the loan facility offered specific products to suit businesses' requirements, providing them financing for equipment and infrastructure, working capital and contracts.

“To qualify for the facility, an applicant has to be a Malaysian company, employ at least five people and have a paid-up capital of not less than RM100,000,” he said.

MDV's facility comprises revolving project loans between RM2mil and RM120mil with financing margins of up to 85% of the contract value and loan tenure periods of up to 120 months.

Approval would take a maximum 45 working days from the date of submission of completed documents.