Bonds Issued At Competitive Pricing
KUALA LUMPUR – The first Danajamin Nasional Berhad (“Danajamin”) guaranteed bonds were issued today at a competitive pricing with a coupon rate of 3.80%. The three (3) year bonds, issued at AAA (fg) rating, were fully taken up.
Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin said, “We are pleased to have the first Danajamin guaranteed bond issued. The competitive rate of the bond reflects investors’ confidence towards Danajamin’s guarantee. We expect the yield to get even better in the subsequent issues as investors become more familiar with our guarantee.”
Syarikat Kapasi Sdn Bhd (“Syarikat Kapasi”) is the issuer of the bonds which are guaranteed by Danajamin. The total issuance of RM30 million with three (3) year maturity is the first tranche of Syarikat Kapasi’s RM200 million five-year Private Debt Securities programme. With Danajamin’s financial guarantee, Syarikat Kapasi, a property development company, is able to raise bonds to finance the construction of its mixed development project in Kota Kinabalu known as KK Times Square II.
The structure of Danajamin’s guaranteed bonds is distinctive and different from the traditional bond structure in the market. The innovative terms and structure incorporated into the guarantee enable Danajamin to achieve a balance between protecting its interest and meeting issuers’ requirements.
Ahmad Zulqarnain added, “The bond structure that we employ allows us to provide long term fixed rate financing for a wide range of sectors, even for non-traditional bond issuers. Syarikat Kapasi’s bonds are the first of the many Danajamin guaranteed bonds to be issued in the months ahead. We are pleased to be able to help encourage more companies to tap the bond market and increase bond issuances in the market.”
Danajamin, the country’s financial guarantee insurer was established as part of the government’s efforts 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.
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