KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, today announced that it is co-guaranteeing Premier Merchandise Sdn Bhd’s RM600 million 9-year Medium Term Notes (MTN) programme with Malayan Banking Berhad (Maybank).
Today, RM575 million of the MTNs were successfully issued and fully subscribed. Under the co-guarantee collaboration, Danajamin guarantees the RM300 million tranche with a longer tenure of up to 9 years. The remaining tranche of RM300 million with tenure of up to year 7 is guaranteed by Maybank. The tranches are rated AAA(fg) and AAA(bg) respectively.
Proceeds from the MTN issuance will be used towards refinancing of the term loan for Premier Merchandise’s acquisition of the then-listed Berjaya Retail Berhad. Premier Merchandise is an investment holding company. Its subsidiary Berjaya Retail Berhad owns and operates Singer Malaysia and 7 Eleven, the largest chain of convenience stores in Malaysia.
Maybank Investment Bank Berhad is the Principal Adviser, Lead Arranger and Lead Manager for this transaction.
Including this guarantee for Premier Merchandise, Danajamin has provided guarantees for RM5.84 billion bond and sukuk programmes to-date.
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