FEATURES OF GTFS 2.0

A summary of the salient terms of the Scheme are as follows;

Features

Producer of

Green Technology

User of

Green Technology

ESCOs

Purpose

To finance investment for the production of green products

To finance investment for the utilization of green technology

To finance investment or assets related to energy efficient project and/or energy performance contracting

Financing Size

Maximum: RM100 million per group of company

Maximum: RM50 million per group of company

Maximum: RM25 million per group of company

Bond/Sukuk Size

Up to maximum of RM300 million per group of company

Not applicable

Financing Tenure

Up to 15 years

Up to 10 years

Up to 5 years

Eligibility

Legally registered Malaysian companies that have at least 51% Malaysian shareholding

Legally registered Malaysian companies that have at least 70% Malaysian shareholding

  • Legally registered Malaysian companies that have at least 51% Malaysian shareholding
  • Registered as Energy Service Company with Energy Commission

Participating Financial Institutions (PFIs)

All commercial and Islamic banks, and DFI’s approved by Ministry of Finance

Government Incentives

  1. i.  Rebate of 2% per annum on interest/profit rate/coupon
  2. ii. 60% Government guarantee of Green Technology Cost (via CGC)

Interest/Profit Rate/Coupon

i. Determine by Participating Financial Institutions (PFI’s) for financing

ii. Based on the relevant rating of the projects  

Source of Fund

Participating Financial Institutions (PFI’s) and Private Green Bond/Sukuk Issuance

Implementation Agencies

  • GreenTech Malaysia, Credit Guarantee Corporation Malaysia Berhad (CGC) and Danajamin Berhad

Application Method

Applicants are to submit application to GreenTech Malaysia at www.gtfs.my for green project certification. The successful applicant then proceeds to forward application for financing to any Participating Financial Institutions (PFI’s)/advisory bank for bond/sukuk issuance

Application Date

The Scheme will be opened until 31 December 2022 or upon approval of financing/bond issuance up to RM5.0 billion, whichever is earlier or any subsequent extension on the availability date.

Processing Fee

0.08% - Financing tenure of 10 years and less

0.1% - Financing tenure of more than 10 years

 

(The above processing fee is subject to green component cost apply or approved, subject to a minimum processing fee of RM5,000 (payable upfront upon submission of the application), payable to Malaysian Green Technology Corporation)

Note *: The maximum financing size/amount shall be aggregated and limited based on Single Group Exposure Limit.

 

Group Exposure is defined as:

  • Companies having common directorship/management which include an individual who exercises control over a company or companies either directly or indirectly.
  • Companies having common ownership/shareholding i.e. shareholding of over 50%.
  • Subsidiary companies.

 

Only new, retrofitting or expansion projects and energy performance contracting that incorporate Green Technology elements that have not been funded are eligible for funding under the Scheme.

 

The Scheme is applicable to fund the purchase of equipment and financing can be for both new and re-conditioned equipment. A list of approved Green Components shall be provided by GreenTech Malaysia with issuance of the Green Project Certificate.

 

The Scheme is also available for the financing of working capital for the purchase of raw materials. The maximum financing tenure allowed for working capital is 5 years and maximum financing amount is RM5 million.

 

Reimbursement for advance payments included as part of the financing granted by PFI or funding via bond issuance, is allowed under the Scheme, subject to advances made on or after the Green Project Certificate date. Any advances made before the certification date is not eligible for reimbursement under this Scheme.

 

Applications for the following purposes are NOT eligible under this Scheme:

  • For refinancing or restructuring of existing facilities;
  • For financing Research and Development cost; or
  • For projects which have already been completed and financed.