What Danajamin Offers
To improve Malaysian companies’ access to long-term financing from the corporate bond market, we provide financial guarantees for bonds and sukuk issuances.
The bond / sukuk issuance must be denominated in Malaysian Ringgit and proceeds have to be used primarily for investments within Malaysia.
Financial Guarantee Insurance (FGI)
Bond / Sukuk market
Credit enhancement for bond /Sukuk issuance.
Investor Guarantee (IG)
Bond / Sukuk market
Optional investor protection for bond / Sukuk issuance.
Financing Facilities Guarantee (FFG)
Financing Facilities market
Credit enhancement for financing facilities.
Our Financial Guarantee acts as a form of credit enhancement to the bonds / sukuk issued. With Danajamin’s Financial Guarantee, the credit rating of the bonds / sukuk will be AAA(fg), the highest credit rating accorded to bonds / sukuk.
With the improved rating, issuers will be more assured of a successful bonds / sukuk issuance. Investors, on the other hand, will have an opportunity to invest in AAA-rated papers that are guaranteed by Danajamin.
Over RM10 billion
Bonds and Sukuk Programmes for
About Danajamin Business
All Malaysian-incorporated companies wishing to issue bonds/sukuk may apply to Danajamin.
Issuances eligible for a Danajamin Financial Guarantee must be issued by a Malaysian-incorporated company and denominated in Malaysian Ringgit.
For more information, please contact our Client Coverage Division.
Information/documents are required to assist us in understanding the underlying transaction and evaluating the application. The information/documents required would include, amongst others, details of the fund raising including purpose, application & repayment capability, historical audited accounts, profile of shareholders and shareholding/corporate structure.
For more details, you may contact our Client Coverage Division.
Does a company applying for Danajamin’s Financial Guarantee still require an Advisor to help with the bonds/sukuk issuance?
Yes. Issuers will still require a principal adviser, typically a licensed financial institution on Securities Commission’s approved list, to assist the issuer through the bonds/sukuk issuance process. The principal adviser will make the application(s) to the relevant authorities including the Securities Commission. This is a requirement pursuant to the Capital Market Services Act 2007.
Danajamin can consider wrapping a large majority of typical Private Debt Securities transactions in the market including, for example, corporate or project financing in nature etc.
For more details, kindly contact our Client Coverage Division.
No. Danajamin only guarantees bonds or sukuk as determined by our mandate.
Yes. Bond/Sukuk issuers will have to pay a fee to Danajamin for the Financial Guarantee Facility/Kafalah Facility provided.
The fees charged are risk-based in nature. In other words, fees are determined based on factors such as credit standing, fundraising quantum & structure and security arrangement which will differ from case to case.
No, an issuer rating is not required when applying to Danajamin.
However, for issuers with bonds/sukuk to be credit wrapped by Danajamin, an issuance rating (which differs from an issuer rating) needs to be done as part of the application to the Securities Commission Malaysia. The rating agency would rate such issuance ‘AAA(fg)’, reflecting the enhanced credit rating position post the credit wrap arrangement. The submission to the Securities Commission may be effected post issuer’s acceptance of Danajamin’s Letter of Offer.
For more information on the issuance process, please go to Issuance Process page.
Relative to a fundraising via loans, a bonds/sukuk issuance is a lengthier process. The duration would differ from case to case, and factors affecting the timeline include transaction complexity & intricacy, number of parties involved including the number of approvals required, from the regulators or otherwise.
This notwithstanding, the motivation for a bonds/sukuk issuance rests in the attraction that financing cost of funds raised are fixed rate for the entire duration of the bonds/sukuk.