Biotechnology Commercialisation Fund (BCF)

PERSIDANGAN & PAMERAN
PENGKOMERSILAN MOSTI 2014
Biotechnology
Commercialisation Fund (BCF)
Pusat Konvensyen Shah Alam
14 August 2014
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Enriching the Nation | Securing the Future
Content
 Background
 Key Objectives
 General Eligibility Criteria
 BCF Features / Evaluation Criteria
 Evaluation Process
 How to Apply
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
A program under the Tenth Malaysian Plan (10MP)
Managed by BiotechCorp as part of overall
incentives for BioNexus status companies
BCF
Background
A funding scheme that combines term loan and
grant at a ratio of 2:1
A maximum funding of RM 3 milion per BioNexus
status company
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
KEY OBJECTIVES
To facilitate on-going commercialisation of
biotechnology products and services and/or
expansion of existing biotechnology business
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
GENERAL ELIBIGILITY
CRITERIA
A BioNexus Status Company
Majority owned by Malaysian
i.e. 51%
Minimum paid-up capital of
RM250,000
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BIONEXUS
STATUS
Eligibility Criteria
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Eligibility Requirements
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
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Type
and
features
of the
Facility
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SALIENT FEATURES OF THE BCF FACILITY
Parties to the BCF are BiotechCorp and the BioNexus Status company
Tenure of term loan – maximum 7 years
Repayment of term loan to commence 1 month after full drawdown of term
loan portion of Facility
Financing facility – minimum RM0.5 million and shall not exceed RM3 million
Each Facility offered will carry a ratio of 2:1 between term loan and grant
Although the funds under the grant portion has been fully disbursed (50% after
execution of the facility documents) and (50% within 12 months after full
drawdown of the term loan facility); the borrower remains obligated for the
grant received and the same may be recovered in the event of any default on
the Facility
At the expiry of the Facility repayment period, the borrower will be discharged
from repaying the grant under the Facility
The interest on the Facility will be calculated on the term loan portion ONLY
The total Facility sum will be disbursed through Malaysian Industrial
Development Finance (“MIDF”)
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
SALIENT FEATURES OF THE BCF FACILITY
Financing
term
Margin of
financing
Security/
Collateral
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An interest rate of 5.0% per annum on monthly rest
A processing fee of 0.25% of the loan amount per applicant is payable for
each approved application
Stamp duties, legal fees and related loan documentation expenses to be
borne by borrowers (deduct from grant portion)
Up to 90% of the total project cost
Joint and several guarantees by directors of the company
Debentures and/or charge over present and future fixed and floating assets of
the company
Corporate guarantee from parent company, if any
Assignment of proceeds/revenues, for project financing.
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
SALIENT FEATURES OF THE BCF FACILITY
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Mode of
Disbursement
Scope of
Financing
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50% of the grant will be disbursed once the Facility and security
documentations are executed and duly completed and fulfilment of all
conditions precedent under the Facility
Drawdown period of the term loan portion is 12 months and is tagged to
achievement of relevant milestones
Disbursement period of the remaining 50% of the grant portion is 12
months and will commence after expiry of the 12 month drawdown
period for the term loan. Drawdown of the 50% will also be based on
achievement of agreed milestone
To fund working capital and capital expenditure
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
SALIENT FEATURES OF THE BCF FACILITY
a)
Capital Expenditure
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b)
Working Capital
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Type of
Expenditure
Facilities related to the expansion of production, research and
services rendered e.g. machineries, laboratory, lab equipment
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Raw materials, consumables or livestock
Expenses directly related to R&D activities towards improving
existing products/services with the exception of payroll/human
capital emolument expenses
Expenses directly related to business expansion activities to
introduce products/services into the global market with exception of
payroll/human capital emolument expenses
Intellectual property filing and registration
Clinical or field trial costs
Compliance and regulatory costs
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
EVALUATION CRITERIA
Ability of the applicant company to generate sustainable future cash flow to
meet debt obligations over the funding period.
The following factors will be taken into consideration:
Approval
Assessment
Criteria
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Applicant’s financial and revenue track records
Number of years in operation
Credit worthiness of the applicant and/or its shareholders/directors
Availability of collaterals and/or securities including corporate
guarantees
Evidence of future revenue streams
Management’s business experience and capabilities.
Project viability
Activities must be within the biotechnology focus areas
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
EVALUATION PROCESS
Meet Eligibility
Criteria?
 BioNexus status
company
 At least 51%
owned by
Malaysians
 Minimum paidup capital of
RM250,000
Yes
Credit Worthy?
 Absence of
negative credit
history (SSM,
insolvency,
Credit Bureau)
 Low probability
of default
Yes
Viability of Project?
 Credit Scoring
No
No
No
REJECT
REJECT
REJECT
BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
EVALUATION PROCESS
Risk Assessment
Yes
Technical
Committee
Recommend?
No
REJECT
Yes
Approval
Committee
Approve?
Yes
Letter of
Offer
No
REJECT
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BIOTECHNOLOGY COMMERCIALISATION FUND (BCF)
HOW TO APPLY
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The application forms can be downloaded from BiotechCorp’s website
at www.biotechcorp.com.my
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Alternatively, to contact the BCF Unit of BioNexus Development Division
for the application forms be emailed to applicant.
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Guidelines for BCF Application is available at www.biotechcorp.com.my
Biotechnology Commercialisation Funding Unit
Level 20 Menara Atlan
Jalan Ampang Kuala Lumpur
Tel: 03-2116 5588
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Thank You
THANK YOU
Wan Hasnul Nadzrin
Vice President, Evaluation
BioNexus Development Division
whnadzrin.wsulong@biotechcorp.com.my
Enriching the Nation | Securing the Future
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