KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, today announced its collaboration with OCBC Bank (Malaysia) Berhad, Standard Chartered Bank Malaysia Berhad and Hong Leong Investment Bank Berhad to guarantee KMCOB Capital Berhad’s guaranteed serial bonds of up to RM300.0 million with a tenure of five (5) years.
KMCOB Capital Berhad is the funding vehicle for Scomi Oilfield Limited, a wholly-owned subsidiary of Scomi Energy Services Bhd.
The entire RM300 million serial bonds were successfully issued today and fully subscribed. Proceeds from the bonds issued will be used to, amongst others, redeem the amount outstanding under KMCOB’s existing Sukuk Murabahah Medium Term Notes programme.
Mohamed Nazri Omar, Director of Client Coverage for Danajamin said, “Over these past 3 years, Danajamin has increasingly collaborated with Malaysia’s leading banks to provide guarantees to our clients. We are indeed very pleased and encouraged that these resulting alliances have allowed us to provide attractive solutions to match the financial requirements of our clients.”
The three collaborating banks also acted as the Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers for this transaction.
Including this guarantee, Danajamin has provided guarantees for RM6.7 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