KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, today announced its collaboration with OCBC Bank (Malaysia) Berhad (“OCBC”) to guarantee Berjaya Land Berhad’s (“B-Land”) RM650 million 10-year Medium Term Notes (“MTN”) programme.
Under the RM650 million co-guarantee collaboration, Danajamin guarantees the RM500 million tranche with a longer tenure of 10 years. The remaining tranche of RM150 million with a tenure of up to 6 years is guaranteed by OCBC. Both tranches, rated at AAA(fg) and AAA(bg) rating respectively, were issued today and fully subscribed.
Proceeds raised from the bonds issuance will go towards B-Land’s investments in its hospitality and integrated development businesses, and also the refinancing of its existing borrowings. B-Land is an intermediate investment holding company within the Berjaya group, and is mainly involved in hotel and recreation activities, property development, gaming and investments.
AmInvestment Bank Bhd is the sole Principal Adviser and Lead Arranger for the transaction. In addition, AmInvestment Bank Bhd together with OCBC have been appointed to be the Joint Lead Manager for the MTN Programme.
Including this guarantee for B-Land, to-date, Danajamin has provided guarantees for RM7.6 billion bond and sukuk programmes.
For more information about Danajamin, its services as well as its leadership, kindly visit our website at www.danajamin.com
Danajamin Nasional Berhad (Danajamin) 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 time, be an enabler to further develop the domestic bond and sukuk market.
To date, Danajamin has provided its guarantee for RM7 billion bond/sukuk programmes issued by 26 companies across various sectors; and brought about a market impact of RM10 billion through its risk sharing collaboration with partner banks.
Danajamin has been accorded the highest rating ‘AAA’ by both RAM Rating Services Berhad (RAM) and Malaysia Rating Corporation Berhad (MARC). 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.
Today, Danajamin is well positioned to further enable the development of Malaysia’s capital market. Growing from strength to strength, Danajamin’s total assets and shareholders’ equity stands at RM1.9 billion and RM1.2 billion respectively (as at 31 December 2013).
In a Snapshot
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
- Further enable the development of the domestic PDS market as an alternative source of financing to complement the banking industry
- Stimulate economic growth by improving access to capital for Malaysian companies
Danajamin aims 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 access to long-term capital for a wider range of companies