KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) announced today that the first tranche of Riverson Corporation Sdn Bhd’s (“Riverson”) five-year RM200 million Private Debt Securities programme, which is guaranteed by Danajamin, has been issued. Rated AAA(fg), the issuance amounting to RM50 million with a 3-year maturity was fully subscribed.
This issuance marks Riverson’s maiden foray into the bond market. Hong Leong Investment Bank is the lead arranger for the bond programme.
Riverson, a developer based in Sabah, will be using the funds raised to finance the construction of its mixed integrated commercial development project in Kota Kinabalu. The proposed development consists of an international standard purpose built medical center that will be operated by Parkway Holdings ("Parkway") under the name of Gleneagles Medical Centre, Kota Kinabalu. Parkway, whose controlling shareholder is Khazanah Nasional Berhad, is a leading private healthcare group in Asia. The hospital in Sabah will be their first in East Malaysia.
With the issuance of the bonds by Riverson today, Danajamin has provided guarantees for RM3.9 billion bond programmes from various sectors including plantation, utilities, education, retail 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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