Danajamin’s First Guarantee For A PFI Project’s Bonds
KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is guaranteeing the RM240 million 15-year Medium Term Notes bond programme issued by TRIplc Ventures Sdn Bhd (“TVSB”). The bonds, issued at AAA(fg) rating, were fully subscribed.
This is the first time Danajamin is providing its financial guarantee for bonds raised to finance a Private Finance Initiative (PFI) project.
Danajamin’s Chief Executive Officer, Ahmad Zulqarnain Onn said, “We are pleased to provide our credit enhancement for a PFI project for the first time. With a strong pipeline of PFI projects expected to be launched by the Government in the near term, we anticipate Danajamin to play a strong role in the financing of such projects.”
TVSB will be using the funds raised from the bond issuance to part-finance the construction of the Universiti Teknologi MARA’s Puncak Alam Campus (Phase 2)’s academic facilities and infrastructure, that is part of a 23-year concession which TVSB has been awarded. TVSB is a wholly-owned subsidiary of public listed TRIplc Berhad (“TRIplc”). The bond programme was arranged and managed by Hong Leong Investment Bank Berhad. To-date, Danajamin has provided guarantees for RM2.9 billion bond programmes from various sectors including property, plantation, utilities, 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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