KUALA LUMPUR – Danajamin Nasional Berhad (“Danajamin”) today announced that it will guarantee the RM200 million Private Debt Securities programme of Syarikat Kapasi Sdn Bhd (“Syarikat Kapasi”). Syarikat Kapasi, a property development company, is a subsidiary of Asian Pac Holdings Berhad.
Under the agreement, Danajamin will provide Financial Guarantee (or “wrap”) for Syarikat Kapasi’s five-year Private Debt Securities Programme. Syarikat Kapasi will be utilising the funds raised to finance the construction of a real estate development project in Kota Kinabalu known as KK Times Square II, which will comprise a retail shopping mall, serviced apartments and shoplots.
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin said, “Danajamin’s financial guarantee enables a wide spectrum of companies to access the bond market for funding. The increased accessibility allows more companies to be able to raise long-term borrowings to finance their businesses at a reasonable cost of financing.
Utilizing Danajamin’s guarantee facility, Syarikat Kapasi is able to raise long term capital to finance this project. Danajamin is pleased to be able to provide support to a viable project which will have a positive impact on the domestic economy.”
Danajamin, the nation’s first financial guarantee insurer, was established to provide financial guarantee insurance for bond/sukuk issuances to enable viable Malaysian companies to access the bond/sukuk market for capital-raising. The establishment of Danajamin forms a component of Bank Negara Malaysia’s policy measure to enhance access to financing. A strong domestic bond market is important as it provides corporations with an alternative source of funding that complements the banking sector.
In providing a guarantee, Danajamin focuses on three key fundamental areas: the intended purpose of the fund-raising, the source of repayment of the issuance and the structure of the bonds to be guaranteed. A robust evaluation process and risk management system has also been put in place to manage Danajamin’s risk.
To-date, Danajamin has approved a total of RM1.7 billion guarantees (including Kencana Petroleum Berhad and Syarikat Kapasi) 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