KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is guaranteeing Poh Kong Holdings Berhad’s (“Poh Kong”) RM150 million 7-year Islamic Commercial Papers/Islamic Medium Term Notes programme (“sukuk”). The first tranche of the programme totaling RM50 million were issued today. Rated AAAIS(fg), the issuance with a 7-year maturity, was fully subscribed.
Poh Kong is a jewellery retailer, with over 90 retail outlets nationwide. The funds raised will be used to refinance existing borrowings and for future capital expenditure, including the opening of new branches.
Danajamin’s Chief Executive Officer, Ahmad Zulqarnain Onn said, “We are pleased to provide the financial guarantee to extend the tenure of Poh Kong’s borrowings for their future growth.”
The sukuk programme was jointly arranged by Maybank Investment Bank Berhad and RHB Investment Bank Berhad.
To-date, Danajamin has provided guarantees for RM3.1 billion bond programmes from various sectors including utilities, plantation, 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
Tel (03) 2299 2068, (019) 288 2736