KUALA LUMPUR – Danajamin Nasional Berhad, the country’s Financial Guarantee Insurer, announced today that it is collaborating with Malayan Banking Berhad, United Overseas Bank (M) Berhad and Affin Bank Berhad in a syndicated financing worth RM855 million for Impian Ekspresi Sdn Bhd.
Impian Ekspresi Sdn Bhd is indirectly controlled by Datuk Desmond Lim Siew Choon, Chairman and NonIndependent Executive Director of Pavilion REIT Management Sdn. Bhd., and Executive Chairman of Malton Berhad.
The RM855 million financing consists of a RM450 million Guaranteed Medium Term Notes (“MTN”) programme co-guaranteed by Danajamin and Maybank, RM400 million syndicated term loan jointly provided by Maybank, UOB and Affin and RM5 million bank guarantee by Maybank. Proceeds from the bond programme will be used to finance the acquisition of a 9.57 acre piece of land at Pusat Bandar Damansara to develop a mixed integrated development project comprising office blocks, residential towers and a retail mall.
Mohamed Nazri Omar, Director of Client Coverage for Danajamin said, “Our partnership with the 3 banks in this syndicated financing has delivered yet another constructive solution to meet our client’s funding requirement. The financing comprising both guaranteed bonds and banking facilities, enables Impian Ekspresi to properly match their cashflow for this project. Danajamin is proud to play a key role in this coveted project to redevelop Pusat Bandar Damansara.”
The RM450 million MTN, rated AAA(fg) and AAA(bg), were successfully issued today with full subscription. Danajamin is providing financial guarantee for RM300 million bonds with maturities of up to ten (10) years while Maybank guarantees the remaining RM150 million with tenures of up to seven (7) years.
Maybank Investment Bank Berhad is the Principal Adviser, Sole Lead Arranger and Sole Lead Manager for the Guaranteed MTN Programme.
Including this guarantee, to-date, Danajamin has provided guarantees for RM6.4 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