Funds Raised To Support Mydin’s Entry Point Project (EPP) Under The Economic Transformation Plan (ETP)
KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is guaranteeing the 13-year RM350 million Islamic Medium Term Notes programme (“Sukuk Programme”) issued by Mydin Mohamed Holdings Berhad (“Mydin”).
The funds raised from the Sukuk Programme will be used to finance the construction and development of three (3) Mydin hypermarkets, which is part of Mydin’s Entry Point Project (“EPP”) under the Economic Transformation Plan (“ETP”).
The first tranche of the Sukuk Programme amounting to RM55 million was successfully issued today and fully subscribed. The Sukuk, with a seven (7) year tenure, were issued with a AAAIS(fg) rating accorded by RAM Rating Services Berhad.
This is Mydin’s maiden venture into the sukuk/bond market. CIMB Investment Bank Berhad was appointed as the Principal Adviser/Lead Arranger/Lead Manager for the Sukuk Programme.
To-date, Danajamin has provided guarantees for RM3.4 billion bond programmes from various sectors including utilities, plantation, retail, education and 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
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