KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, today announced that it is guaranteeing RM125 million under a ten (10) year RM450 million Asset-Backed Sukuk Ijarah Programme issued by Purple Boulevard Berhad for the acquisition of Ampang Point Shopping Complex, Kuala Lumpur. This marks Danajamin’s inaugural participation in an asset-backed securitisation transaction which is supported by rental income from Ampang Point Shopping Complex.
Purple Boulevard Berhad is a special-purpose vehicle incorporated to undertake the securitisation of Ampang Point Shopping Centre; a community shopping mall, with approximately 300,000 sq ft of net lettable area initially opened in the early nineties and continues to serve needs of the surrounding community.
The ten(10) year Sukuk Ijarah programme consists of RM95 million Class A, RM15 million Class B, RM15 million Class C, the Danajamin-Guaranteed, Class D RM125 million and the unrated Subordinated Class E RM97 million were successfully issued last Friday and fully subscribed. The Class A, B, C and D have ratings of AAA, AA, A and AAA(fg), respectively with stable outlook, by RAM Rating Services Bhd. The remaining balance of Subordinated Class E of RM103 million shall be issued at a later date.
Mohamed Nazri Omar, Chief Executive Officer of Danajamin said, “Danajamin’s participation in the securitisation of the Ampang Point Shopping Complex marks another milestone for us as this is our first participation in asset-backed securitisation transaction. This is in line with our strategy of supporting a transaction whilst facilitating the provision of rating diversity to the Malaysian debt capital market via our guarantee of RM125 million Class D only as opposed to us traditionally guaranteeing the entire issuance.”
Partnering with Danajamin as the Lead Arranger for this transaction is Hong Leong Investment Bank Berhad.
Including this guarantee, viable Malaysian corporations have issued Danajamin guaranteed issuances approximating RM7,418 million. Following redemptions of RM1, 645 million to-date, the current outstanding Danajamin guaranteed issuances stands at RM5, 773 million.
For more information about Danajamin, its services as well as its leadership, log on to www.danajamin.com
Danajamin Nasional Berhad (Danajamin) is Malaysia’s first and only Financial Guarantee Insurer. Established in May 2009, Danajamin’s objective is to ensure that financially viable corporates continue to be able to access the bond market for their long term financing needs and at the same time, be an enabler to further develop the domestic bond and sukuk market.
To date, Danajamin has provided its guarantee for RM8 billion bond/sukuk programmes issued by 28 companies across various sectors; and brought about a market impact of RM14 billion through its risk sharing collaboration with partner banks.
Danajamin has been accorded the highest rating ‘AAA’ by both RAM Rating Services Berhad (RAM) and Malaysia Rating Corporation Berhad (MARC). It is regulated and supervised by Bank Negara Malaysia under the Financial Services Act 2013. Danajamin is equally owned by Minister of Finance Incorporated and Credit Guarantee Corporation Malaysia Berhad.
Today, Danajamin is well positioned to further enable the development of Malaysia’s capital market. Growing from strength to strength, Danajamin’s total assets and shareholders’ equity stands at RM1.9 billion and RM1.3 billion respectively (as at 31 December 2014).
In a Snapshot
Danajamin’s key objectives are to:
- Provide financial guarantee to enable financially viable companies access to the PDS market to obtain financing, with emphasis on long-term financing
- Further enable the development of the domestic PDS market as an alternative source of financing to complement the banking industry
- Stimulate economic growth by improving access to capital for Malaysian companies
Danajamin aims to:
- Facilitate a wider range of credit-worthy companies to raise capital via the bond/sukuk market
- Encourage smaller/non-traditional issuers to raise capital via the bond/sukuk market
- Provide access to long-term capital for a wider range of companies
Ain Zubaidah Zulkifli
Tel (03) 2265 0849