Danajamin Nasional Berhad (“Danajamin”) today announced its readiness to accept applications for Financial Guarantee Insurance or Al-Kafalah Guarantee from Malaysian companies. The following statement was issued by Danajamin today:
“Danajamin is pleased to announce its underwriting criteria and the issuance of the Danajamin Application Kit to enable eligible companies to submit their applications for Financial Guarantee Insurance (for private debt securities) or Al-Kafalah Guarantee (for Islamic securities).
Danajamin’s underwriting criteria require companies seeking its financial guarantee insurance to possess:
- an investment grade issuer rating by a recognised rating agency in Malaysia,
- the ability to generate adequate cash flow to meet its debt obligations,
- strong corporate governance and good shareholder/management character,
- strong risk management practices and policies, and
- adequate security arrangement.
In addition to meeting the underwriting criteria, preference will be given to Malaysian incorporated companies seeking to raise funds for productive on-shore investments that will provide a positive multiplier effect on the Malaysian economy.
With the issuance of the underwriting criteria and application requirements, Danajamin is now ready to receive applications from companies that meet the underwriting criteria and require assistance to tap the debt capital market. The Danajamin Application Kit can be obtained from www.danajamin.com.
Companies seeking Danajamin’s financial guarantee insurance for their PDS issues are encouraged to discuss their eligibility and fund-raising plans with their respective licensed financial advisers or arrangers.”
Danajamin was established by the Government of Malaysia on 15 May 2009 as a Financial Guarantee Insurer with an issued and paid-up capital of RM1 billion. It is licensed under the Insurance Act 1996 and is regulated and supervised by Bank Negara Malaysia.
Khoo Boo Hock
Tel (03) 2035 9669