KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”), the country’s first Financial Guarantee Insurer, continue to reinforce its role as a catalyst by providing access to financing through Danajamin PRIHATIN Guarantee Scheme (“DPGS”).
Danajamin PRIHATIN Guarantee Scheme (“DPGS”) was first introduced by YAB Tan Sri Dato’ Haji Muhyiddin bin Haji Mohd Yassin, Prime Minister of Malaysia as part of the Economic Stimulus Package (“PRIHATIN”) following the unprecedented outbreak of COVID-19.
PRIHATIN was launched to protect the welfare and well-being of the people as well as local businesses. To ensure that the Malaysian economy continues to thrive amidst the pandemic, the Government announced the DPGS, a guarantee scheme worth RM50 billion which covers up to 80% of the loan amount for financing working capital requirements.
The guarantee scheme is expected to support medium to large local businesses by providing an avenue to recuperate and withstand the economic impact of COVID-19. To be eligible for DPGS, corporates and businesses must fulfil the criteria listed below prior to application:
- Company is incorporated in Malaysia
- Business operation of the company is based in Malaysia
- The majority shareholding (50%+1) must be Malaysian
- Company is able to generate income to service the approved working capital facility
- Financially viable Company that has been adversely impacted by COVID-19
- The minimum financing facility amount is set at RM20 million per transaction.
- The maximum guarantee coverage amount of RM400 million or 80% of the financing facility will be also be applied to a group of companies.
The facility is available through all Financial Institutions until 31 December 2020 or until the fund is fully utilised. Eligible applicants that fulfil the criteria above can submit their financing application through their preferred Financial Institutions. It should be noted that all applicants will also be subject to credit evaluation by Danajamin before obtaining the approval for the guarantee.
Following Danajamin’s briefing to Financial Institutions on 8 May 2020, Financial Institutions have been informed that they can proceed to accept applications for the DPGS.
Danajamin is the administrator and manager of DPGS on behalf of Syarikat Jaminan Pembiayaan Perniagaan Berhad (“SJPP”), a wholly-owned company of Minister of Finance Incorporated.
For more information on Danajamin and its services, please visit www.danajamin.com
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 RM2.79 billion and RM1.8 billion respectively (as at 31 December 2019).
For further information, please visit www.danajamin.com
Corporate Strategy & Communications
Tel (03) 2265 0882