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Government Guarantee Scheme

Green Technology Financing Scheme 3.0

Following the announcement by the Government during the Budget 2021 speech on 6 Nov 2020, the Green Technology Financing Scheme 3.0 (GTFS 3.0) has been launched as part of the Government’s agenda to support Sustainable and Responsible Investment (SRI) as well as drive green and sustainable standards in Malaysia. The RM2 billion scheme now includes supporting the issuance of SRI Sukuk and green bonds and is open for application until 31 December 2022.
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Danajamin will administrate and manage this Scheme which includes processing applications, undertaking credit evaluation, approval and rejection of applications, and post-disbursement monitoring for the entire tenure of guarantee.

Product Feature

Financing Amount

  • Financing amount from RM10 million up to RM500 million.

Financing Tenure

  • No cap on minimum or maximum financing tenure.

Guarantee Coverage

  • Up to 80% guarantee coverage or RM400 million and applicable for entire project financing cost.

Type of Financing

  • For working capital, term loan financing facilities and Bond / Sukuk issuances.

Premium

  • Paid annually in advance.
  • Responsibility for payment rests with the Issuer.

Claim Period

  • Within 30 days from expiry of guarantee coverage period.

Payout

  • Payout will be made within 10 business days from the date on which a claim is filed with Danajamin.

Early Termination

  • Danajamin will have the right to tender payment (i.e accelerate Bond / Sukuk repayment).
  • Beneficiaries can early terminate the guarantee subject to satisfying certain conditions to be agreed by all contracting parties.
GTFS 1.0 / GTFS 2.0 GTFS 3.0
Budget allocation
  • GTFS1.0 - RM3.5B until 2017
  • GTFS2.0 – RM2.0B until 2020
  • RM2.0B until 2022
Type of financing
  • Working capital and term loan granted by Lending Institutions
  • Term loan financing facilities granted by Lending Institutions
  • Bond / Sukuk issuance
Eligibility criteria
  • Legally registered Malaysian companies that have at least 51% Malaysian shareholding
  • Open to all Malaysian companies with green/SRI project financing that contributes towards Malaysia’s sustainable development agenda.
Financing amount
  • Up to RM100M per group of company
  • From RM10M up to RM500M per group of company
  • For < RM10M, to be viewed on a case to case basis
Financing tenure
  • Up to 15 years
  • No cap on minimum/maximum financing tenure
Guarantee coverage
  • 60% Government guarantee administrated by CGC
  • Limited to green technology cost (as certified by MGTC)
  • Up to 80% guarantee coverage or RM400M, whichever is lower
  • Applicable for entire project financing cost
Interest subsidy
  • 2% interest subsidy per annum for first 7 years
  • No interest subsidy
Application method
  • Applicants are to submit application to MGTC for green project certification
  • The successful applicant then proceeds to forward application for financing to any participating financial Institutions
  • Applicants or any participating financing institutions are to submit application to Danajamin
  • Where applicable, Danajamin may require additional certification or impact analysis from independent parties
1

Do you require funds

for your green project?

Danajamin will provide guarantee coverage for any funding raised via the capital market (Sukuk/bond) or loan financing from financial institutions for any project that qualifies under the GTFS 3.0 program. Evidence of proven business model and technology will be required to ensure that viable projects are funded.
2

Does the purpose of your funding

fall into these categories?

The GTFS was introduced in Malaysia as a way to attract the industry sector in adopting environment-friendly operations and practices, as well as adopt the green technology approach in their innovations. GTFS 3.0 will continue to support the growth of green technology in Malaysia in line with the Government’s agenda to support Sustainable and Responsible Investment (SRI). 

The following are the key areas of focus for GTFS 3.0:

Energy

• Renewable energy
• Energy efficiency

Building

• Green building
(refer to Green Building Index)

Transportation

• Clean transportation

Natural Resources

• Sustainable water & waste water management
• Terrestrial/ aquatic conservation
• Management of living natural resources and land use
• Pollution prevention

Others

• Eco-efficient / Circular economy adapted products
• Climate change adaptation
3

Are you eligible? Fill up the form below​

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