AmBank Participating In The Transaction As Short-Term Financing Provider
KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is guaranteeing Antara Steel Mill Sdn Bhd’s (“Antara”) RM300 million 7-year Islamic Securities programme, to assist Antara in obtaining long term financing via the sukuk market. As part of the financial solution for Antara, AmBank is also participating in the transaction to provide short term working capital financing.
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin said, “This collaboration is testament to Danajamin’s commitment to work with the banking industry in providing Malaysian corporations access to capital, while fulfilling our objective to catalyse the development of the sukuk/bond market”.
Of the RM300 million sukuk programme, RM180 million is issued today, while the remaining RM120 million will be issued tomorrow. The sukuk programme was arranged and managed by AmInvestment Bank Berhad. Part of the LION Group, Antara is an integrated steel producer, manufacturing hot briquetted iron, billets bars and sections.
As at 28 June 2011, Danajamin has provided guarantees for RM2.31 billion bond programmes from various sectors including property, plantation, utilities and now manufacturing.
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