First Issuance With 20 Year Programme, Longest Tenure Guaranteed By Danajamin To-date
KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”), the country’s Financial Guarantee Insurer, today announced it is guaranteeing Senari Synergy Sdn Bhd’s (“Senari Synergy”) RM380 million 20-year Islamic Medium Term Notes programme.
Rated AAAIS(fg), the RM380 million sukuk programme was fully issued and subscribed today.
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin said, “Senari Synergy is the first company in Sarawak to be given our financial guarantee. We are proud to work together with them in this transaction, which is of great significance to Danajamin, as it is the first issuance with a 20-year programme that we are guaranteeing”. To-date, Danajamin has provided guarantees for RM2.69 billion bond programmes from various sectors including property, plantation, utilities, and manufacturing.
“This transaction further reinforces the important role that Danajamin plays in providing companies access to the longer end of the sukuk market, which is less liquid as well as facilitating the development of Malaysia as a leading Islamic financial centre”, he added.
The issuance of Senari Synergy’s sukuk followed the signing of an Al-Kafalah guarantee facility agreement with Danajamin held in Kuching, Sarawak earlier. Mohammad Aris Yusop, the Chief Executive Officer of Senari Synergy Group, signed the agreement on behalf of Senari Synergy, while Danajamin was represented by Ahmad Zulqarnain Onn.
Jointly witnessing the signing ceremony were Dato’ Sri Abdul Hamidy Hafiz, Chairman of Danajamin; Tan Sri Datuk Amar Haji Bujang Mohammed Nor, Director of Senari Synergy; and Ms. Pushpa Rajadurai, Managing Director, Corporate and Institutional Banking, AmBank Group. AmInvestment Bank Berhad is the Principal Adviser, Lead Arranger and Lead Manager for the sukuk programme. Also present were representatives from Astramina Advisory Sdn Bhd, the Financial Adviser to Senari Synergy Group.
In his note after the signing ceremony, Mohammad Aris Yusop said, “Danajamin’s guarantee is a strong endorsement of Senari Synergy and our two vital development projects namely Assar Senari Industrial Complex I at Senari (ASIC 1) and Assar Senari Industrial Complex II at Tanjung Manis (ASIC 2). Upon completion of ASIC 2, Senari Synergy is poised to become the Sarawak state’s flagship entity that is focussed on strategically important activities in the oil & gas and palm oil industries.”
Senari Synergy is an investment holding company with core group activities focusing on the development, operation, management and maintenance of port facilities mainly for oil and gas, petrochemical and oleo chemicals-related services.
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