Danajamin Guarantees Brecon Synergy RM160 Million of RM200 million Islamic Medium Term Notes
Danajamin announced that it is guaranteeing up to RM160.0 million of the first issuance of RM200.0 million Islamic Medium Term Notes issued by Brecon Synergy Sdn Bhd under its IMTN Programme of up to RM450.0 million.
CYBERJAYA – Danajamin Nasional Berhad (“Danajamin”), the country’s first Financial Guarantee Insurer, announced that it is guaranteeing up to RM160.0 million of the first issuance of RM200.0 million Islamic Medium Term Notes (“IMTN”) issued by Brecon Synergy Sdn Bhd (“BSSB”) under its IMTN Programme of up to RM450.0 million.
The Principal Adviser, Lead Arranger and Lead Manager of the IMTN Programme is Maybank Investment Bank Berhad. The transaction was advised by Zico Capital Sdn Bhd, a specialised, corporate finance and capital markets advisory firm licensed by the Securities Commission Malaysia.
Proceeds from the IMTN shall be utilised to part-finance the acquisition cost of King Henry VIII College located in Cyberjaya. Commenting on the issuance, Mohamed Nazri Omar, Chief Executive Officer of Danajamin said, “We are proud to support another viable Malaysian company in raising its financing to grow and realise its full potential. This guarantee marks our support towards the education industry. We truly believe that the best sustainable future for decades to come, rests in the abilities and capabilities of our children. Through our guarantee, we hope to instill investor confidence and join Brecon Synergy Sdn Bhd in planting the seeds of tomorrow through their business objectives, as well as to contribute meaningfully to the nation’s society and economy.”
Speaking about the project, Datuk Benny Hoe, the Group Managing Director of Brecon Synergy Sdn Bhd (“BBSB”) said, “The principal activities of BSSB are providing education services and other learning facilities for study and research. BSSB entered into collaboration agreement with 1541 Ltd, a subsidiary of Christ College Brecon (“CCB”). King Henry VIII College in Cyberjaya is CCB’s first overseas sister-school and the school is built on its 478-year history, tradition and values, to ensure students develop a powerful sense of what they can achieve.”
The school welcomes day students and boarders since September 2018 and has more than 400 students to-date coming from over 22 different countries. By September 2019, the school is expected to cater to more than 500 students.
To date, Danajamin’s guarantees have assisted 39 issuances, with a total guarantee size of RM10.7 billion. The total market impact of these deals, through risk-sharing collaboration with partner banks, stands at RM21.2 billion.
Danajamin Nasional Berhad 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, be an enabler to further develop the domestic bond and sukuk market.
To date, Danajamin’s guarantee have assisted 42 issuances across various sectors; and brought about a market impact of approximately RM22.7 billion through its risk sharing collaboration with partner banks.
Danajamin is ‘AAA’ rated by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. 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.
Danajamin’s total asset and total shareholder’s equity stands at RM2.75 billion and RM1.79 billion respectively (as at 31 December 2018).
Danajamin held a charity run in support of autism awareness, in conjunction with its 7th Anniversary celebration. The inaugural run which took place in Persiaran Flora, Cyberjaya witnessed close to 800 runners participating comprising of Danajamin’s staff, family members, clients, business partners and members of the public.