Green Technology Financing Scheme (GTFS) & Green Technology Financing Scheme Islamic (GTFS – i) 2.0

Objective

Green Technology has been envisaged as one of the emerging drivers of economic growth for Malaysia. GTFS/GTFS-i 2.0 was established by the Government aimed to encourage local companies and entrepreneurs to be involved in green technology-based projects to support the national green technology agenda.

Purpose of Financing

  • Producer of Green Technology – to finance investment for the production of green technology products
  • User of Green Technology – to finance investment for the utilisation of green technology
  • Energy Services Company (ESCO) – to finance investment or assets related to energy efficient projects and/ or energy performance contracting

The Scheme is applicable for financing of:

  1. Capital Expenditure
    For purchase of equipment; for both new and re-conditioned equipment.
  2. Working Capital
    The maximum loan/ financing facility amount allowed for working capital is up to RM5 million

The following purposes are not eligible under the Scheme:

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

Eligibility Criteria

  • The scheme shall only be available to the following categories:
    i. Producer of Green Technology
    ii. User of Green Technology
    iii. Energy Services Company (ESCO)
  • Company must be legally registered in Malaysia, Malaysian-owned and controlled with at least 51% shareholding
  • Sectors eligible are as follows:
    i. Energy
    ii. Manufacturing
    iii. Transportation
    iv. Building
    v. Waste
    vi. Water
  • Company with Green Project Certificate issued by Malaysian Green Technology Corporation and the certificate must be within the validity period

Maximum Loan/ Financing Limit

  • Producer of Green Technology: RM100 million
  • User of Green Technology: RM50 million
  • Energy Services Company (ESCO): RM25 million

Maximum Loan/ Financing Tenure

  • Producer of Green Technology: Up to 15 years
  • User of Green Technology: Up to 10 years
  • Energy Services Company (ESCO): Up to 5 years

Type of Loan/ Financing facilities

  • All types of facilities for both Conventional loan and Islamic financing

Guarantee Cover

  • 60% guarantee on the approved loan/ financing which shall only be confined to the value stated in the Green Project Certificate issued by Malaysian Green Technology Corporation

Participating Financial Institutions

  • All commercial and Islamic banks, and Development Financial Institutions (DFIs) licensed by Bank Negara Malaysia
  • Other participating institutions duly approved by the Ministry of Finance

Interest/ Profit Rate

  • To be determined by the Participating Financial Institutions

Government Incentive

  • 2% per annum interest/ profit rate reimbursement for the first seven (7) years of the loan/ financing based on the Letter of Confirmation issuance date

Application Procedures

  • Applicants are to submit application to Malaysian Green Technology Corporation at www.gtfs.my for green project certification
  • Successful applicants then proceeds to forward application for financing to any Participating Financial Institutions

Application Period

  • The scheme is made available until 31st December 2020 or upon approval of loan/ financing up to RM2 billion, whichever is earlier or any subsequent extension on the availability date.
  • The available balance for the scheme is as follows:
    Available balance (RM) (as at 1st October 2019)

    1,936,400,000*

    *Note: excluding cancelled due to unmaterialised applications