Danajamin’s Financial guarantee enables Syarikat Kapasi to raise bonds for property development project
KOTA KINABALU – Danajamin Nasional Berhad (“Danajamin”) today seals the agreement with Syarikat Kapasi Sdn Bhd (“Syarikat Kapasi”) to guarantee the latter’s RM200 million five-year Private Debt Securities programme. With Danajamin’s financial guarantee, Syarikat Kapasi, a property development company, can now raise bonds to finance the construction of its mixed development project in Kota Kinabalu known as KK Times Square II.
Dato’ Sri Abdul Hamidy Hafiz, Chairman of Danajamin said “Providing the financial guarantee to Kapasi is in line with Danajamin’s objective to help corporations raise financing from the bond market at a reasonable rate. We are pleased to support the KK Times Square II project which has great potential and will create multiplier effects in Sabah’s economy.”
Danajamin is the nation’s first financial guarantee insurer. It was established in 2009 as part of the Government’s effort to ensure that corporations will continue to have access to funding to finance their businesses. Specifically, Danajamin provides financial guarantee, a credit enhancement, to bond/sukuk issuances to help companies raise long term financing from the bond market at reasonable rates. The bond 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.
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin said, “Danajamin’s unique capability is that we are able to provide long term fixed rate financing for a wide range of sectors. The credit enhancement that we provide, allows a wide spectrum of companies to tap the bond market for fixed rate funding of longer maturities. This will encourage more corporate bond issuances in the country and contribute towards the development of the domestic bond market.”
The financial guarantee facility agreement was signed today at a signing ceremony between Syarikat Kapasi and Danajamin. The ceremony was jointly witnessed by Datuk Peter Pang En Yin, Deputy Chief Minister of Sabah, who was the guest of honour, Dato’ Sri Abdul Hamidy Hafiz, and Tan Sri Dato’ Seri Hj Megat Najmuddin bin Dato’ Seri Dr Haji Megat Khas, Chairman of Asian Pac. Signing the agreement on behalf of Kapasi was Dato’ Mustapha bin Buang, Managing Director of Asian Pac while Danajamin was represented by its Chief Executive Office, Encik Ahmad Zulqarnain Onn. The arranger and adviser of this transaction is Affin Investment Bank.
To-date, Danajamin has approved a total of RM2.9 billion guarantees for companies in various industries including oil and gas, property & construction, plantation and infrastructure.
Danajamin Nasional Berhad is Malaysia’s first Financial Guarantee Insurer.A AAA-rated company, Danajamin providesfinancial guarantee insurance to bonds and sukuk issuances to facilitate capital-raising by Malaysian companies from the debt capital markets. The establishment of Danajamin forms part of the Government’s on-going effort to ensure the continued flow of credit in the financial system to businesses. Danajamin is wholly owned by the Malaysian Government and has an issued and paid-up capital of RM1 billion with a capacity to underwrite policies of up to RM15 billion. It is licensed under the Insurance Act 1996, and is regulated and supervised by Bank Negara Malaysia.
Visit www.danajamin.com for more information.
Danajamin Nasional Berhad
Tel (03) 2299 2068, (019) 2882 736