KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, today announced its collaboration with CIMB Bank Berhad in a club deal worth RM305 million for Great Realty Sdn Bhd for up to 15 years.
The club deal comprises a RM170 million Danajamin guaranteed bonds programme of up to 15 years and a RM135 million term loan facility from CIMB Bank Berhad of up to 10 years.
Great Realty, a wholly-owned special purpose vehicle of Belleview Sdn Bhd, was incorporated to develop Aman Central, a one-stop shopping mall in Alor Setar, Kedah. Strategically located in the Central Business District, the 8-storey shopping mall will be the biggest lifestyle mall in Alor Setar when completed in 2Q, 2015.
Belleview has 30 years of track record in property development, property management and property investment in Penang and Kedah and is helmed by Dato’ Sonny Ho Kiong Chan.
The first tranche of RM30.0 million guaranteed bonds were successfully issued today and fully subscribed. Proceeds from the guaranteed bonds issued will be used to finance the construction of Aman Central.
Mohamed Nazri Omar, Chief Executive Officer of Danajamin said, “This transaction demonstrates Danajamin’s collaborative approach with our banking partners towards structuring financing solutions to meet the unique needs of our clients. This is strategic given Danajamin’s continued emphasis on deal sharing of transactions to complement our banking partners as well as improve our portfolio diversification.”
CIMB Investment Bank Berhad acted as the Lead Arranger for this transaction.
Including this guarantee, Danajamin has provided guarantees for RM6.9 billion bond and sukuk programmes to-date.
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