KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”), the country’s first Financial Guarantee Insurer, today announced that it is guaranteeing a five-year RM130 million Sukuk Ijarah Programme (“Sukuk”) issued by Malaysia Steel Works (KL) Berhad (“Masteel”).
The said Sukuk, is rated AAAIS(fg) by Malaysian Rating Corporation Berhad (“MARC”) following the backing of an irrevocable and unconditional Kafalah Guarantee provided by Danajamin.
The principal adviser/lead arranger, lead manager, Shariah adviser and facility agent for this transaction is Kuwait Finance House (Malaysia) Berhad (“KFH”).
Commenting on the Sukuk programme, Mohamed Nazri Omar, Chief Executive Officer of Danajamin said, “This guarantee marks another milestone for Danajamin as we facilitate another viable company raise its required financing. Masteel has almost 50 years of track record. They have endured several crises throughout their establishment and have since grown from strength to strength as one of the key players in the industry. Through our guarantee, we hope to instill investors’ confidence and assist Masteel to successfully deliver their business objective and continue to contribute meaningfully to the nation’s economy.”
Dato’ Sri Tai Hean Leng, Managing Director/ Chief Executive Officer of Masteel shared, “We wish to express our gratitude to Danajamin and KFH for believing in our strengths and seeing us as a gem. We are truly privileged to receive the support through Danajamin’s guarantee for this issuance. The funds available from this issuance will be used primarily for refinancing, working capital requirement and for the acquisition of a new melting technology package. This technology will be a game changer for Masteel, putting us well ahead of the competition. The issuance will not only improve our liquidity position, but will enable Masteel to expand our operation in line with the installation of the new facilities.”
David Power, Chief Executive Officer of KFH added that “Being one of the pure Islamic bank in Malaysia, we are proud to be able to work hand in hand with Masteel and Danajamin on this issuance.”
To date, Danajamin has guaranteed 37 issuers, with a total guarantee size of RM10.6 billion. The total market impact of these deals, through risk-sharing collaboration with partner banks, stands at RM21.1 billion.
For more information on Danajamin and its services, please visit www.danajamin.com
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 36 companies across various sectors; and brought about a market impact of approximately RM20.7 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 RM2.7 billion and RM1.7 billion respectively (as at 31 December 2017).
Rizwil Ismail
Deputy Director,
Corporate Strategy & Communications
Tel (03) 2265 0882
Email: rizwil@danajamin.com
