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27 June 2016

Danajamin Supports Growth in the Palm Oil Industry, Guarantees a RM300m Sukuk Murabahah Programme for Chellam Plantations

Danajamin confirmed that it is guaranteeing a 17-year Sukuk Murabahah Programme amounting to RM300 million for Chellam Plantations (Sabah) Sdn Bhd.

KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”), the country’s Financial Guarantee Insurer, announced its 30th guarantee issuance today.

Danajamin confirmed that it is guaranteeing a 17-year Sukuk Murabahah Programme amounting to RM300 million for Chellam Plantations (Sabah) Sdn Bhd (“Chellam Plantations”). The first tranche of the Sukuk Murabahah Programme amounting to RM150 million with a tenure of up to 17 years, rated AAA(fg) by RAM Rating Services Bhd, was successfully issued and subscribed today. The balance will be issued at a later date that will be duly announced.

Funds from the Sukuk issuance will support Chellam Plantations’ new planting in Kalimantan and expansion in Indonesia. Proceeds from the Sukuk will also be used to refinance its outstanding borrowings and finance its capital expenditures.

The Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers for this transaction are RHB Investment Bank Berhad and OCBC Al-Amin Bank Berhad.

“We are pleased to be guaranteeing this issuance and supporting an industry that is one of the key drivers of the 11th Malaysia Plan. We are confident that with Chellam Plantations’ strong business model and growth potential from its sizeable portfolio of land banks, this issuance will further spur both its business and our national palm oil industry,“ said Mohamed Nazri Omar, CEO of Danajamin.

Chellam Plantations is an investment holding company with subsidiaries involved in the upstream segment of the oil palm industry which does cultivation and milling of oil palm as well as management of palm oil estates.

Nazri also said Chellam Plantations is another good example of how Danajamin’s financial guarantee is able to assist a financially viable company to raise the requisite funding from the capital markets.

“Today’s issuance should encourage more local companies to tap into capital market funding for their future growth. The Ringgit bond market is an excellent financing platform for promising companies to unlock business opportunities as is in Chellam Plantations’ case.

Since Danajamin’s set up in 2009, it has guaranteed both conventional and Islamic issuances across a range of industries such as Property Development & Real Estate, Oil & Gas, Power and Consumer Related Products to name a few.

Including this guarantee, Danajamin has guaranteed issuances approximating RM8.3 billion. Following redemptions of RM1.9 billion to date, the current outstanding Danajamin-guaranteed issuances stands at about RM6.4 billion.

For more information about Danajamin, its services as well as its leadership, kindly visit our website at www.danajamin.com

About Danajamin

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 RM8.8 billion bond/sukuk programmes issued by 30 companies across various sectors; and brought about a market impact of RM15.2 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).

Media Contact

Norhanifah A. Jalil
Director, Human Capital & Communications
Tel (03) 2265 0840
Email: norhanifah@danajamin.com

Emilia Azyyati Abdul Rahman
Associate Director, Communications
Tel (03) 2265 0847
Email: emilia@danajamin.com

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