Danajamin’s First Collaboration With A Financial Institution
KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is co-guaranteeing Ranhill Power Sdn Bhd’s (“Ranhill Power”) RM800 million Islamic Medium Term Notes (“IMTNs”) programme with Maybank Islamic Berhad (“Maybank Islamic”). This is Danajamin’s first collaboration with a financial institution to co-guarantee a transaction.
Under this arrangement, Danajamin and Maybank Islamic will jointly guarantee Ranhill Power’s sukuk, with Danajamin concentrating on the longer end of the issuance. The RM800 million sukuk were successfully issued today in two tranches, rated AAAIS(fg) and AAAIS(bg) respectively. Of the total amount, Danajamin guarantees the tranche with the longer maturities of 9 to 15 years amounting to RM500 million. The other tranche of RM300 million, with maturities of 2 to 8 years, is guaranteed by Maybank Islamic.
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin, said, “We are pleased to have achieved a key milestone. This co-guarantee transaction reflects our commitment to work with banks to help further develop the bond market. Such collaboration not only allows Danajamin to bring more issuances to the market, it also enables more companies to benefit from Danajamin’s guarantee.”
To date, Danajamin has provided guarantees for RM1.66 billion bond programmes. Going forward, Danajamin will continue to collaborate with more banks to help viable companies access the bond/sukuk market.
Ranhill Power is the investment holding company for Ranhill Powertron Sdn Bhd and Ranhill Powertron II Sdn Bhd, which are independent power producers in Sabah.
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
Tel (03) 2299 2068, (019) 288 2736