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MDGIF Investment Policy Statement

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Applicable to: MDGIF Project Promoters
Equity Partners
MDGIF INVESTMENT POLICY STATEMENT (MIPS)

Code: MDGIF Guide 1001 - 2024

Effective Date: 17th May 2024

This document is a property of the Midstream and Downstream Gas Infrastructure Fund. All rights reserved.
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government agency required for operating in the midstream and downstream gas
sector.
3.9
Intervention Strategies
The MDGIF shall provide financial and non-financial interventions to eligible projects.
3.9.1 Financial Intervention:
a. The MDGIF may take any of the approaches and forms for executing its equity
investments in midstream and downstream gas projects.
b. Direct financial intervention through provision of equity investment can be made by
the Fund in various types of infrastructure projects in the midstream and downstream
gas operations such as, but not limited to:
i.
Brownfield priority gas projects and operations that will improve efficiency of gas
supplies and contribution to economic development.
ii.
High value gas projects which can expand faster with capital injection.
iii.
Additional investment to projects in eligible gas infrastructure target sectors.
iv.
Existing high value projects which have been unable to reach maturity due to
financial limitations of current project owners/sponsors.
v.
Greenfield projects, covering project development, structuring, and financing.
vi.
Abandoned projects that are proven to be bankable.
3.9.2 Non-Financial Interventions:
The MDGIF can provide required advisory services and support necessary for efficient project
development, and execution in line with the Fund’s purpose and objectives pursuant to the
Act.
3.10 Investment Horizon and Exit Strategy
3.10.1 Investment Holding Period
a. The investment horizon of the MDGIF is driven by the following considerations:
i.
One of the critical challenges facing the midstream and downstream gas
infrastructure sector is the lack of adequate long-term financing.
ii.
The long-term nature of gas infrastructure projects means significant upfront capital
investments are required while revenue streams are often distanced away to post-
completion of the projects. As such, the perceived risk by lenders is high.
iii.
Pursuant to the Act, MDGIF is well-positioned to act as an institutional equity investor
with patient capital that would encourage risk sharing.