KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, announced today that it is collaborating with DBS Bank Limited and United Overseas Bank Berhad in a syndicated guarantee transaction to guarantee RM700 million bonds issued by Quill Retail Malls Sdn Bhd.
This collaboration further reaffirms Danajamin’s commitment to partner the banking industry, in its effort to facilitate Malaysian companies’ access to the bond market.
The RM700 million bonds form part of a RM850 million seven (7) year bond programme issued by Quill Retail. The bond programme comprises RM700 million guaranteed bonds and RM150 million unrated bonds. Under this arrangement, Danajamin, DBS and UOB will provide guarantees of RM260 million, RM260 million and RM180 million, respectively. The bonds guaranteed by Danajamin, DBS and UOB are rated AAA(fg) and AAA(bg). Today, RM425 million of bonds with a maturity of four (4) years were successfully issued and fully subscribed.
Quill Retail is a member of the Quill Group of Companies, an established property group with more than 20 years of proven track record in designing and constructing building premises for multinational corporations such as HSBC Bank, BMW and DHL. Proceeds from the bond programme will be used to construct a retail mall at Vision City, Kuala Lumpur.
Hong Leong Investment Bank acted as the Principal Adviser, Lead Arranger and Lead Manager for this bond programme.
Including the guarantee for Quill Retail, to-date, Danajamin has provided guarantees for RM6.1 billion sukuk and bond programmes.
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
Associate Director, Communications
Tel (03) 2299 2068, (019) 288 2736
Sharie Elina Ibrahim
Assistant Manager, Communications
Tel : (03) 2299 2069, (012) 6826 300