KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, announced today that it is collaborating with RHB Bank Berhad to co-guarantee RM628 million bonds, which form part of the RM900 million bonds issued by Mecuro Properties Sdn Bhd. This is the first subordinated bond issuance that Danajamin is guaranteeing.
The RM900 million bond issuance comprises RM272 million senior bonds and RM628 million guaranteed bonds. Under the co-guarantee arrangement for the guaranteed bonds, Danajamin guarantees the tranches with maturities of 7 to 8.5 years amounting to RM419 million. The other tranche of RM209 million with a maturity of up to 7 years is guaranteed by RHB Bank. The bonds guaranteed by Danajamin are rated AAA(fg) whilst those guaranteed by RHB Bank are rated AA2(bg). All the bonds were issued today and fully subscribed.
Mecuro Properties is a special purpose vehicle incorporated as a funding conduit for the bond issuance which entailed a sale-and-leaseback transaction backed by a portfolio of 5 completed and well tenanted properties belonging to the Boustead Holdings Berhad group of companies. Mecuro Properties is a wholly owned subsidiary of Boustead Properties Berhad, which in turn is a wholly owned subsidiary of Boustead Holdings Berhad.
Affin Investment Bank Berhad is the Principal Adviser / Lead Arranger for the bond issuance. RHB Investment Bank Berhad and Affin Investment Bank Bhd are the Joint Lead Managers for this transaction.
Including the guarantee for Mecuro Properties, to-date, Danajamin has provided guarantees for RM5.3 billion sukuk and bond programmes.
Danajamin, the country’s first and only Financial Guarantee Insurer, was established by the Government to be a catalyst to stimulate and further develop the domestic bond and sukuk market. Danajamin’s objective is to provide financial guarantee, a credit enhancement, to bond/sukuk issuances to help viable companies raise long-term fixed rate financing from the bond/sukuk market. The bond/sukuk market is an important alternative source of financing, as it complements the banking sector. Its continuous development is critical in ensuring that Malaysian companies have several funding sources to finance their business expansion and investments.
A AAA-rated company, Danajamin is jointly owned by Minister of Finance Incorporated (50%) and Credit Guarantee Corporation Malaysia Berhad (50%). It has a paid-up capital of RM1 billion with another RM1 billion callable capital. Danajamin is licensed under the Insurance Act 1996, and is regulated and supervised by Bank Negara Malaysia.
For more information about Danajamin, its services as well as its leadership, kindly visit our website www.danajamin.com
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