Our Operations During the Movement Control Order.

Market Segments

At Danajamin, our customers are both the issuer and the investor. 
Investors are our customers as they are the beneficiaries of our Financial Guarantee.

Key Features of

Danajamin’s Financial Guarantee

Our Financial Guarantees are obligations from a AAA-rated government-owned financial institution to investors.
Our Financial Guarantees are unconditional and irrevocable.
Bonds / Sukuk guaranteed by us are accorded a AAA(fg) rating by RAM Rating Services Bhd/Malaysian Rating Corporation Bhd (MARC).
We will honour our contractual obligation to make good any claims made, within 10 business days.

Prudent Risk Management

As a custodian of public funds, we manage our risks prudently. 
Guided by sound business principles/practices, we aim to reciprocate investors’ continued trust and confidence in us.

Risk Sharing

We advocate risk sharing with partner banks in our transactions. This allows for wider participation of banks hence making space for maximum private sector involvement, in line with our mandate. Investors can also take comfort in the fact that a transaction has obtained clearance from more than one credit committee.

Risk Management

We are a responsible risk manager regulated by Bank Negara Malaysia, strictly adhering to regulations from all authorities. This includes compliance to concentration limits, whether transactional, group or sectorial in nature, for proper diversification at regulatory determined levels. Our risk management system and framework is robust and conforms to international best practices.

Our Guarantee Origination Model

Danajamin’s resilient track record is founded on robust credit management and governance. These safeguard our company's long-term sustainability and enhance investor confidence in us. As part of Danajamin’s credit management and governance, due diligence is taken when evaluating and monitoring client progress and performance.

We take a rigorous holistic approach in our assessment of potential issuers. These encompass :
  • credit and viability evaluation,
  • structuring of the financial package,
  • deliberations at the credit approval stage,
  • ensuring that the facility documentation properly reflect the approved financial terms, and
  • thorough account management – post-issuance
To ensure adherence to the financing terms thus allowing early alerts of potential problems and appropriate remedial management in managing the quality of our portfolio. Together, our Client Coverage, Client Solutions, as well as the Risk Management function, have established an effective and sound credit evaluation and monitoring process.

How Financial Guarantee Works

Step 1
Identifying New Deal
  • Understand client’s business profile and funding objectives / requirements
  • Review financial position and viability of cash flow projection
  • Obtain internal clearance to proceed with the deal
Step 2
Deal Structuring
  • Develop indicative principal term sheet (PTC)
  • Identify partner banks
  • Obtain appetite indication from partner banks
Step 3
Perform credit assessment
  • Obtain supporting documents from client
  • Perform KYC and credit checks (CTOS/CCRIS)
  • Prepare credit proposal with deal rationale and risk mitigations
  • Finalise PTC with client and partner banks
Step 4
Obtain internal approval
  • Deal presentation to relevant approving authorities within Danajamin
Step 5
  • Confirmation of PTC with client/partner banks
  • LO issuance/acceptance
  • Execute transaction documents with client/partner banks
  • Client to fulfil issuance conditions
Step 6
  • Danajamin issue financial guarantee policy
  • Identify potential investors for book building, if applicable
  • Issuance by client
Step 7
  • Monitor payments, reporting requirements and financial covenants
  • Perform periodic review

Our Target Market

Our primary focus will be supporting debt fundraising activities for non-SME companies, which is defined as follows:

Mid-sized corporations

Turnover from RM100mil to RM1.0bil OR SHF of >RM10mil & Turnover of >RM50mil.


Seasonal / cyclical industries identified as being on the downside during participating financial institutions’ periodic strategy reviews.

Emerging Industries

New entrants / tech-based / renewable energy / services as defined by regulators e.g. BNM, MITI, MIDA etc.

Amber Zoned Industries

Industries assigned with limited credit appetite by participating FIs.

What We Offer

Financial Guarantee Insurance (FGI)

Bond / Sukuk

Credit enhancement for Bond / Sukuk issuance.
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Investor Guarantee (IG)

Bond / Sukuk

Optional investor protection for Bond / Sukuk issuance.
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Financing Facilities Guarantee (FFG)

Financing Facilities

Credit enhancement for financing facilities.
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Green Technology Financing Scheme 3.0​

Bond / Sukuk

Financing Facilities

Government Guarantee Scheme

Green Technology Financing Scheme (GTFS 3.0) is intended to encourage Sustainable and Responsible Investment (SRI) that achieve green, social and sustainable standards in Malaysia.
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Client Success Stories

Discover how Danajamin supports organizations in achieving their goals.

Business Enquiry

If you would like to know more about our guaranteed products, fill up the form below:

Frequently Asked Questions

Who can apply for Danajamin’s Financial Guarantee?

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.

To apply for the Financial Guarantee, what are the information/documents required by Danajamin?

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.

What kind of transactions can Danajamin wrap?

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.

Does Danajamin guarantee loans?

Yes. Danajamin currently provides guarantee for term loan financing.

Does Danajamin charge for the Financial Guarantee/wrap that it provides?

Yes. Bond/Sukuk issuers will have to pay a fee to Danajamin for the Financial Guarantee Facility/Kafalah Facility provided.

How are Financial Guarantee fees determined by Danajamin?

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.

Is an issuer rating by RAM or MARC required for an application to Danajamin?

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 visit Issuance Process.

How long does a Bond / Sukuk issuance process take?

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.