Who We Are

Danajamin Nasional Berhad is Malaysia’s first and only Financial Guarantee Insurer.

We were established in May 2009, to be a financial guarantor and a catalyst to stimulate and further develop the Malaysian bond/sukuk market. We provide financial guarantee insurance for bonds and sukuk issuances to viable Malaysian companies to enable access to the Private Debt Securities (PDS) market.

Jointly owned by Minister of Finance Incorporated (50%) and Credit Guarantee Corporation Malaysia Berhad (50%), Danajamin is rated AAA by both RAM Rating Services Bhd (RAM) and Malaysia Rating Corporation (MARC). Credit Guarantee Corporation is a financial institution majority owned by Bank Negara Malaysia.

Danajamin has total assets of RM2.1 billion and total shareholders’ equity of RM1.6 billion as at 31 December 2016.

Danajamin is regulated and supervised by Bank Negara Malaysia under the Financial Services Act 2013.

Danajamin’s key objectives are:

  • to provide financial guarantee to enable financially viable companies access to the PDS market to obtain financing, with emphasis on long-term financing
  • to catalyse the further development of the domestic PDS market as an alternative source of financing to complement the banking industry
  • to stimulate economic growth by improving access to capital for Malaysian companies

We aim to:

  • facilitate a wider range of credit-worthy companies to raise capital via the bond/sukuk market
  • encourage smaller/non-traditional issuers to raise capital via the bond/sukuk market
  • provide availability of long-term capital for a wider range of companies

Funding requirements

Invests

Pays profit / coupon
& principal

Returns

  • Guarantees Sukuk / Bonds issued
  • AAA credit enhancement

Provision of Guarantee Facility
for Sukuk/Bonds issuance

Payment of Guarantee Fee

Payment of coupon/profit and
principal on behalf of issuer
should issuer fail to do so

Danajamin provides financial guarantee, a form of credit enhancement, to bonds/sukuk. With Danajamin’s guarantee, the bonds/sukuk will be automatically upgraded to AAA(fg), the highest 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. Investors also have the assurance that Danajamin will pay the principal and up to one coupon/profit (where applicable) on behalf of the issuer, should the issuer fail to do so.


Kindly click here to view Danajamin’s Memorandum & Articles of Association.