In the budget speech for 2010, Dato’ Seri Najib Tun Abdul Razak, the Prime Minister of Malaysia announced the establishment of Green Technology Financing Scheme amounting to RM1.5 billion as an effort to improve the supply and utilization of Green Technology. The scheme could benefit companies who are producers and users of green technology.
As a sign of commitment, the Government will bear 2% of the total interest/profit rate. In addition, the Government will provide a guarantee of 60% on the financing amount via Credit Guarantee Corporation Malaysia Berhad (CGC), with the remaining 40% financing risk to be borne by participating financial institutions (PFIs).
The Prime Minister also appoint the GreenTech Malaysia as the conduit for the Green Technology Financing Scheme (GTFS) application. The scheme is expected to provide benefits to more than 140 companies of which the application will be open starting from 1st January 2010
The scheme aims to promote green technology by availing loans/financing to companies that supply and utilize green technology.
GTFS offers financing for:
Producer of Green technology for the purpose of financing investment in production of green technology that meet scheme objectives.
User of Green Technology for the purpose of financing investment in utilisation of green technologies that meets the scheme objectives.
To any case, the purpose shall NOT be to refinance existing credit facilities.
Maximum tenure of financing
Producer of Green Technology – up to 15 years
User of Green Technology – up to 10 years
Producer of Green Technology – up to RM50 million per company
User of Green Technology – up to RM10 million per company
TYPE OF FACILITIES
All types of financing facilities under Islamic and Conventional financing.
Investment in Green Technology which refers to products, equipment, or system which must satisfy the following criteria
- Minimises the degradation of the environment
- Has a zero or low green house gas (GHG) emission
- Safe for use and promotes healthy and environment for all forms of life
- Conserves the use of energy and natural resources; or
- Promotes the use of renewable resources
- Companies are to request for technical audit from Pusat Teknologi Hijau Malaysia, Ministry of Energgy, Green Technology & Water to confirm eligibility of the products, equipment or system to be financed under the scheme.
Eligible for registeres Malaysian companies
Producer of Green Technology with at least 51% Malaysian owned
User of Green Technology with at least 71% Malaysian owned
FEES & CHARGES
Processing fee is waived.
60% guarantee cover by Credit Guarantee Corporation (CGC).
Guarantee fee of 0.5% per annum payable up-front to be borne by borrower
*For technical information on GTFS, please contact:
Malaysian Green Technology Corporation (GreenTech Malaysia)
No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9
43650 Bandar Baru Bangi
Selangor Darul Ehsan
Hotline: 1 800 88 4837
Fax: 03-8921 0801/0802