The inaugural issuance was oversubscribed, receiving overwhelming response of about RM800 million from a diverse range of investors achieving a yield of 4.8%. As a result, the issuance was upsized from the initial size of RM300 million to RM500 million, of which RM400 million was offered to investors and RM100 million privately placed.
The subordinated sukuk will have a tenure of 10 years, with a callable option made available from year five onwards. It is rated AA1 by RAM Rating Services and AA+ by Malaysian Rating Corporation. The subordinated sukuk, which will be redeemed at its full nominal value upon maturity, is subordinated, unsecured obligations of the company, ranking pari passu (equally) with any other existing subordinated, unsecured obligations of the company.
Said Mohamed Nazri Omar, CEO, Danajamin, “We have put in place a comprehensive capital management plan as part of regulatory requirement. This sukuk programme provides an alternative to the company in sourcing for additional capital. This will also increase the ability of Danajamin in meeting its developmental mandate of bringing new and viable companies into the debt capital market.”
Mohamed Nazri said support had come from asset managers, financial institutions, pension funds and insurance companies. "This reflects the market confidence in Danajamin. We were able to attract a total of 16 investors to participate in this inaugural issuance, ” he said.
The issuance sees Danajamin strengthening its regulatory capital level, enabling it to continue meeting its developmental mandate to stimulate the bond/sukuk market. The joint principal advisers and joint lead arrangers are AmInvestment Bank and Maybank Investment Bank. The joint lead managers for the first issuance were AmInvestment Bank, Maybank Investment Bank and Hong Leong Investment Bank.
Since its establishment in 2009 to broaden access to the corporate bonds market with a focus on projects related to economic transformation initiatives, Danajamin has guaranteed both conventional and Islamic bond/sukuk programmes issued by 31 viable Malaysian corporations across various sectors. To date Danajamin has brought about a market impact of approximately RM16 billion.
The subordinated sukuk will have a tenure of 10 years, with a callable option made available from year five onwards. It is rated AA1 by RAM Rating Services and AA+ by Malaysian Rating Corporation. The subordinated sukuk, which will be redeemed at its full nominal value upon maturity, is subordinated, unsecured obligations of the company, ranking pari passu (equally) with any other existing subordinated, unsecured obligations of the company.
Said Mohamed Nazri Omar, CEO, Danajamin, “We have put in place a comprehensive capital management plan as part of regulatory requirement. This sukuk programme provides an alternative to the company in sourcing for additional capital. This will also increase the ability of Danajamin in meeting its developmental mandate of bringing new and viable companies into the debt capital market.”
Mohamed Nazri said support had come from asset managers, financial institutions, pension funds and insurance companies. "This reflects the market confidence in Danajamin. We were able to attract a total of 16 investors to participate in this inaugural issuance, ” he said.
The issuance sees Danajamin strengthening its regulatory capital level, enabling it to continue meeting its developmental mandate to stimulate the bond/sukuk market. The joint principal advisers and joint lead arrangers are AmInvestment Bank and Maybank Investment Bank. The joint lead managers for the first issuance were AmInvestment Bank, Maybank Investment Bank and Hong Leong Investment Bank.
Since its establishment in 2009 to broaden access to the corporate bonds market with a focus on projects related to economic transformation initiatives, Danajamin has guaranteed both conventional and Islamic bond/sukuk programmes issued by 31 viable Malaysian corporations across various sectors. To date Danajamin has brought about a market impact of approximately RM16 billion.