KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”), the country’s first Financial Guarantee Insurer, and Bank Pembangunan Malaysia Berhad (“BPMB”), Malaysia’s oldest and largest development bank, today announced their collaboration to co-guarantee the issuance of an 18-year, RM639.0 million Senior Sukuk Murabahah (“Sukuk”) by TRIplc Medical Sdn Bhd (“TMSB”), a wholly-owned entity of TRIplc Berhad.
This guarantee marks Danajamin’s second guarantee facility extended to the TRIplc group of companies after the previous sukuk issuance for the construction of Universiti Teknologi Mara (“UiTM”) Puncak Alam, Selangor. TMSB, the Government of Malaysia (“GOM”) and UiTM entered into a 25 year concession agreement on 18 February 2016 where TMSB will undertake the development of a new teaching hospital and medical academic centre in UiTM’s existing campus in Puncak Alam, Selangor (“the Project”).
For BPMB, this guarantee is yet another involvement of the Bank in supporting the many Private Finance Initiative (“PFI”) projects that it has financed since the PFI approach was introduced by the GOM under the 9th Malaysian plan as an alternative means for the public sector in the development and maintenance of infrastructure and other facilities.
Successfully issued and subscribed today, the funds raised from the issuance of the Sukuk will be used primarily to part-finance the development cost of the Project. The Sukuk is rated AA1/stable by RAM Rating Services Berhad premised on the support from the co-guarantors’ irrevocable and unconditional financial guarantee during the construction period. This means that the guarantee will not be required once the Project has been completed.
According to Mohamed Nazri Omar, Chief Executive Officer of Danajamin, “Danajamin’s involvement into this transaction marks the company’s contribution towards the country’s healthcare sector. From a developmental perspective, we have undertaken a number of notable transactions across various industries. We will continue to be innovative in how we apply our financial guarantee to create rating diversity and at the same time find new ways to bring developmental and economic impact to Malaysia.”
BPMB’s President/Group Chief Executive Officer, En. Shaharuddin Zainuddin said that with more than 43 years in supporting the GOM’s development agenda, the Bank’s participation in this project reflects its continued commitment to provide financing to the four mandated sectors which are infrastructure, oil & gas, maritime and technology. To-date, BPMB has approved financing totaling RM7.2 billion for 33 PFI projects in the country mainly in infrastructure which includes education and healthcare sectors.
Partnering with Danajamin and BPMB as the Principal Adviser / Lead Arranger and Lead Manager for this transaction is Hong Leong Investment Bank Berhad.
For the past 8 years Danajamin has brought a total of 18 first-time bond/sukuk issuers into the market and has provided its guarantee for bond/sukuk programmes issued by a total of 32 viable Malaysian corporations across various sectors. To date Danajamin has brought about a market impact of approximately RM 16 billion.
For more information about Danajamin, its services as well as its leadership, kindly visit www.danajamin.com or contact:
Danajamin Nasional Berhad (Danajamin) is Malaysia’s first and only Financial Guarantee Insurer. Established in May 2009, Danajamin’s objective is to ensure that financially viable corporates continue to be able to access the bond market for their long term financing needs and at the same time, be an enabler to further develop the domestic bond and sukuk market.
To date, Danajamin has provided its guarantee for bond/sukuk programmes issued by 32 companies across various sectors; and brought about a market impact of approximately RM16 billion through its risk sharing collaboration with partner banks.
Danajamin has been accorded the highest rating ‘AAA’ by both RAM Rating Services Berhad (RAM) and Malaysia Rating Corporation Berhad (MARC). It is regulated and supervised by Bank Negara Malaysia under the Financial Services Act 2013. Danajamin is equally owned by Minister of Finance Incorporated and Credit Guarantee Corporation Malaysia Berhad.
Today, Danajamin is well positioned to further enable the development of Malaysia’s capital market. Growing from strength to strength, Danajamin’s total assets and shareholders’ equity stands at RM2.1 billion and RM1.6 billion respectively (as at 30 June 2017).
For more information on BPMB, please visit www.bpmb.com.my or contact:-
Sulaiman Abd Rahim
Senior Vice President I/Acting Head
Business Banking I Tel: 03-26113124
Latifah Abdul Latiff
Senior Vice President I/Acting Head
Business Banking II Tel: 03-26113124
About Bank Pembangunan Malaysia Berhad
Bank Pembangunan Malaysia Berhad (BPMB) was incorporatead on 28 November 1973 and began operations on 8 June 1974. BPMB landed its first significant role in the development of the Malaysian economy by assisting entrepreneurs involved in small and medium-sized industries through the provision of various financing facilities, training and advisory services, particularly to Bumiputera entrepreneurs.
BPMB achieved another milestone in December 1998 by providing financing to infrastructure projects, particularly Government-backed projects. In early 2002, BPMB further enhanced its role as a development finance institution by offering corporate advisory and underwriting services to companies that were involved in the development of infrastructure projects.
Today, BPMB is mandated to provide medium to long term financing to the infrastructure maritime, technology and oil & gas sectors. Through its wholly-owned subsidiary Pembangunan Leasing Corporation Sdn Bhd (PLC), BPMB also provides financing to small and medium-sized businesses including those involved in manufacturing, construction, supply, transportation, agriculture, hospitality and information technology. BPMB’s venture capital arm, Global Maritime Ventures Berhad (GMV) is the country’s principal equity venture capital provider in the maritime industry, mandated to play a strategic role in the development of the national maritime business sector