KUALA LUMPUR: MIDF Amanah Investment Bank Bhd has received the approval from the Finance Ministry to be a participating financial institution (PFI) under the government’s Green Technology Financing Scheme 2.0 (GTFS 2.0).
MIDF Investment Bank, a wholly-owned subsidiary of Malaysian Industrial Development Finance Bhd, is the first investment bank in Malaysia to emerge as a PFI under the scheme.
“MIDF Investment Bank is thankful to the Ministry of Finance to have provided us the opportunity to further support the government’s green economy initiative.
“We are very passionate in our commitment to drive economic growth in a sustainable and responsible manner and we are pleased to have another avenue to do so through the GTFS 2.0,” said MIDF Investment Bank chief executive officer Datuk Dominic Silva.
MIDF group managing director Datuk Charon Mokhzani the approval sets another significant milestone for the group in its efforts to build a greener economy and demonstrates continued commitment to advance the green finance agenda to better serve the needs of society and to achieve a sustainable future.
GTFS 2.0 offers financial support to producers and users of green technology, and energy services companies (ESCOs), by offering a two per cent per annum interest/profit rate subsidy for the first seven years of the company’s financing arrangement undertaken with a PFI.
Additionally, it also includes a 60 per cent government guarantee on the financing amount.
The financing limit for producers, users and ESCOs categories are up to a maximum of RM100 million, RM50 million and RM25 million respectively.
With easier access to funding via the subsidy and guarantee, GTFS 2.0 aims to accelerate the expansion of green investments by providing eligible projects and companies with easier access to funding.
GTFS 2.0 focuses on six sectors, namely, energy, water, waste management, building, manufacturing and transportation.
GTFS 2.0 is administered by Malaysian Green Technology Corporation, a government agency under the purview of the Ministry of Energy, Science, Technology, Environment and Climate Change, and Credit Guarantee Corporation Malaysia Bhd.
The scheme will be opened until December 31, 2020 or upon approval of financing/ funding issuance up to RM2.0 billion.