KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it is partnering Malayan Banking Berhad (“Maybank”) and OCBC Bank (Malaysia) Berhad (“OCBC”) in a syndicated guarantee transaction to guarantee the RM515 million 10-year Medium Term Notes Programme (“MTN programme”) issued by Silver Sparrow Berhad (“Silver Sparrow”).
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin, said, “Indeed, we are pleased to be participating in our first syndicated guarantee transaction, involving more than 2 guarantors. This partnership continues to reaffirm Danajamin’s commitment to complement the banking system whilst fulfilling our objective to further develop the bond market.”
Under this syndicated guarantee transaction, Danajamin, Maybank and OCBC will guarantee Silver Sparrow’s MTN programme, with Danajamin guaranteeing up to RM300 million. The tranches guaranteed by Danajamin will be rated AAA(fg), while those guaranteed by Maybank and OCBC are rated AAA(bg).
Today, RM245 million bonds with 4-year and 3-year maturity were issued, of which, RM140 million was guaranteed by Danajamin. The issuance was fully subscribed.
Proceeds from the MTN Programme will be used to part finance the acquisition of the Aloft Hotel in KL Sentral and the development of the Sandakan Harbour Square in Sabah which includes the Sandakan Harbour Mall and Four Points by Sheraton Sandakan Hotel. Maybank acted as the lead arranger and principal adviser for the MTN Programme.
Silver Sparrow is a Special Purpose Vehicle (“SPV”) owned by Aseana Properties Ltd (“Aseana”), which is an associate company of the Ireka Corporation Berhad. Aseana is listed on the Main Market of London Stock Exchange.
To-date, Danajamin has provided guarantees for RM3.7 billion bond programmes 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
Tel (03) 2299 2068, (019) 288 2736