KUALA LUMPUR – Danajamin Nasional Berhad (Danajamin), the country’s Financial Guarantee Insurer, today announced its collaboration with United Overseas Bank (Malaysia) Bhd in respect of an issuance under the 12-year RM650 million Sukuk Murabahah programme established by Perdana Petroleum Berhad (PPB).
The inaugural Sukuk issuance of RM635 million for a tenure of up to 5 years under the said programme was successfully issued and fully-subscribed today. The said Sukuk is rated AAA(fg) by RAM Rating Services Bhd.
PPB, a subsidiary of Dayang Enterprise Holdings Berhad (Dayang), is mainly involved in oil and gas related activities, primarily as an owner and charterer of offshore support vessels. Proceeds from the programme will be used primarily to refinance its outstanding borrowings and to fund its working capital requirements.
United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is also the Lead Arranger and Joint Lead Manager for the Sukuk Murabahah programme.
According to Mohamed Nazri Omar, CEO of Danajamin, “Our participation in the Sukuk Murabahah programme is a continuation of Danajamin playing our role as the only Financial Guarantee Insurer in the country. We are always looking for the opportunity to enable financially viable companies to tap the capital market for long term financing. We continue to look forward to partnering with financial institutions in providing attractive solutions to match the financial requirements of our clients.”
He added that there are synergistic benefits that Dayang provides to PPB in the long-run, as the former positions itself for its future hook-up and commissioning (HUC) and maintenance jobs. This move would potentially improve PPB’s overall vessel utilization levels, thus better positioning PPB to weather the current challenges within the oil and gas industry. He also mentioned that UOB Malaysia has been an invaluable partner in this transaction, given their experience and understanding of the oil & gas and vessel support industry.
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.
Including this guarantee, Danajamin has guaranteed issuances approximating RM8.1 billion. Following redemptions of RM1.9 billion to date, the current outstanding Danajamin-guaranteed issuances stands at about RM6.1 billion.
For more information about Danajamin, its services as well as its leadership, kindly visit our website at 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 RM8.7 billion bond/sukuk programmes issued by 29 companies across various sectors; and brought about a market impact of RM14.9 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).
Emilia Azyyati Abdul Rahman
Associate Director, Communications
Tel (03) 2265 0847