CGC step up efforts to promote Green Technology Financing Scheme
Kuala Lumpur, Wed – Credit Guarantee Corporation Malaysia Berhad (CGC) today announced that it was in partnership with CIMB Bank to promote the Green Technology Financing Scheme (GTFS) to producers and users of this environmental friendly technology.
CGC, one of the two implementation agencies, is spearheading the marketing and promotion of GTFS including forging strategic alliance with CIMB Bank. CIMB Bank, the second biggest lender based on asset, is willing to provide up to RM150 million in financing for the GTFS. Meanwhile, CGC is committed to a three-day turnaround time to process GTFS applications received from CIMB Bank.
ìWe are confident that this three-day turnaround commitment would help to further expedite the approval and disbursement of the funds to borrowers, a special arrangement that we have made with CIMB Bank in view of their participation in supporting the GTFS, the first bank to do so in Malaysia,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad..
ìCIMB Bank’s participation in this scheme demonstrates the bankís confidence in the potential of this relatively new sector,î added Datuk Wan Azhar.
CGC, the leading credit guarantee provider, has been mandated to provide 60% guarantee to borrowers of GTFS, effectively covering RM900 million out of the total RM1.5 billion established by the Government to improve the supply and utilisation of green technology. The remaining 40% financing risk shall be borne by the participating financial institutions (PFIs).
The producers of green technology can avail financing of up to RM50 million whereas users, a maximum of RM10 million. The financing tenure is up to 15 years and 10 years for producers and users respectively.
Borrowers are charged an annual guarantee fee of 0.5% for GTFS, a small percentage compared to fees charged for other CGC schemes that are calculated based on the risk-profile of the borrower. In addition, the cost of borrowing is cushioned by the 2% interest/profit rate subsidy provided by the government.
CGC has been stepping up its promotional efforts to create awareness of the huge potential in this sector through its participation in various exhibitions and seminars organised by trade associations and business chambers nationwide.
ìSoon we will be running an advertising campaign to further increase awareness of the Scheme not only amongst the producers and users but also amongst the general public with the objective of enlightening them on the impact of green technology on the environment and the general well-being of the Malaysian populace,î said Datuk Wan Azhar.
The response to the GTFS is very encouraging with more than 470 companies having registered with the National Green Technology Centre and enquired how to avail the Green Technology Financing Scheme.
ìWe hope the willingness shown by CIMB Bank will encourage other financial institutions to come forward and aggressively participate in the Scheme within the shortest possible time,î added Datuk Wan Azhar.
The Scheme, officially launched by the Prime Minister YAB Datuk Seri Najib Tun Razak on 26 January 2010, is expected to provide benefits to more than 140 companies within the next two to three years. The GTFS was rolled out effective 1 January 2010.
05-Apr-2010 09:29:54 AM