KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, today announced that it is guaranteeing Bolton Berhad’s seven (7) year RM230 million Islamic Medium Term Notes (IMTN) programme.
Of the RM230 million IMTN programme, a total of RM150 million sukuk was issued in 3 tranches today and fully subscribed. The tenure of these tranches ranges from 5 to 7 years and each tranche was issued with a AAAIS(fg) rating.
Proceeds raised from the sukuk issuance will go towards financing land acquisition and also development costs for Bolton’s new development in Sungai Long.
This RM230 million Danajamin-guaranteed IMTN programme is part of a RM370 million financing solution package for Bolton’s capital expenditure and business expansion needs. Affin Investment Bank Berhad is the Principal Adviser and Lead Arranger for the transaction. Bolton Berhad is one of Malaysia’s oldest property developer. Primarily involved in property development, its flagship developments comprise notably of Taman Tasik Prima in Puchong, Selangor, Tijani Bukit Tunku in Kuala Lumpur and Surin in Penang.
Including this guarantee for Bolton, to-date, Danajamin has provided guarantees for RM5.54 billion sukuk and bond programmes.
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
Sharie Elina Ibrahim
Assistant Manager, Communications
Tel : (03) 2299 2069, (012) 6826 300