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: info@mdv.com.myWebsite:

www.mdv.com.myFacebook: Malaysiadebtventures