First Tranche Of RM50 million Sukuk Issued
KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that the first tranche of TSH Sukuk Musyarakah Sdn Bhd’s (“TSH”) eleven-year RM100 million Islamic Medium Term Notes (“IMTNs”) programme, which is guaranteed by Danajamin, has been issued. The issuance amounting to RM50 million with a 7-year maturity was fully subscribed.
The financial guarantee provided by Danajamin enhanced the sukuk’ rating to AAAIS(fg), allowing TSH to access the sukuk market to raise longer tenure financing. This is line with Danajamin’s objective to assist viable non-AAA companies to tap the sukuk/bond market for long term fixed rate financing.
TSH Sukuk Musyarakah Sdn Bhd is a special-purpose vehicle wholly owned by TSH Resources Berhad.
A public listed company, TSH Resources Berhad’s principal activity is operating oil palm plantations.
Danajamin, the country’s first 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.
To date, Danajamin has provided guarantees for almost RM1 billion bond programmes.
Danajamin Nasional Berhad is Malaysia’s first Financial Guarantee Insurer.A AAA-rated company, Danajamin provides financialguarantee insurance to bonds and sukuk issuances to facilitate capital-raising by Malaysian companies from the bond/sukuk markets. Danajamin is wholly owned by the Malaysian Government and has a paid-up capital of RM1 billion with another RM1 billion callable capital. It has a capacity to underwrite policies of up to RM15 billion. 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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