KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is guaranteeing Segi Astana Sdn Bhd’s (“Segi Astana”) RM470 million 14-year Medium Term Notes Programme (“MTN Programme”).
The first tranches of the MTN programme totaling RM150 million, with maturity ranging from 11 years to 14 years, were issued today. The issuance, rated AAA(fg), was fully subscribed.
Segi Astana is a special purpose vehicle (“SPV”) jointly owned by WCT Land Sdn Bhd, a wholly owned subsidiary of WCT Berhad, and Malaysia Airports Holdings Berhad. The funds raised from the MTN Programme will be used to primarily part finance the development costs of an integrated complex at the Kuala Lumpur International Airport 2 (“KLIA2”).
AmInvestment Bank Berhad acted as the Principal Adviser, Lead Arranger and Lead Manager for the MTN Programme.
Including this issuance, to-date Danajamin has provided guarantees to 16 companies for bond programmes totaling RM4.4 billion. The companies are 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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