Danajamin Nasional Bhd, the country’s first Financial Guarantee Insurer, and Bank Pembangunan Malaysia Bhd, Malaysia’s oldest and largest development bank, today (23 October 2017) announced their collaboration to co-guarantee the issuance of an 18-year, RM639.0 million Senior Sukuk Murabahah by TRIplc Medical Sdn Bhd, a wholly-owned entity of TRIplc Berhad.
This guarantee marks Danajamin’s second guarantee facility extended to the TRIplc group of companies after the previous sukuk issuance for the construction of Universiti Teknologi Mara Puncak Alam, Selangor.
TMSB, the Government of Malaysia (“GOM”) and UiTM entered into a 25-year concession agreement on 18 February 2016 where TMSB will undertake the development of a new teaching hospital and medical academic centre in UiTM’s existing campus in Puncak Alam, Selangor.
For BPMB, this guarantee is yet another involvement of the Bank in supporting the many Private Finance Initiative projects that it has financed since the PFI approach was introduced by the GOM under the 9th Malaysian plan as an alternative means for the public sector in the development and maintenance of infrastructure and other facilities.
Successfully issued and subscribed today, the funds raised from the issuance of the Sukuk will be used primarily to part-finance the development cost of the Project. The Sukuk is rated AA1/stable by RAM Rating Services Berhad premised on the support from the co-guarantors’ irrevocable and unconditional financial guarantee during the construction period. This means that the guarantee will not be required once the Project has been completed.
According to Mohamed Nazri Omar, Chief Executive Officer of Danajamin, “Danajamin’s involvement into this transaction marks the company’s contribution towards the country’s healthcare sector. From a developmental perspective, we have undertaken a number of notable transactions across various industries. We will continue to be innovative in how we apply our financial guarantee to create rating diversity and at the same time find new ways to bring developmental and economic impact to Malaysia.”
BPMB’s President/Group Chief Executive Officer, Shaharuddin Zainuddin said that with more than 43 years in supporting the GOM’s development agenda, the Bank’s participation in this project reflects its continued commitment to provide financing to the four mandated sectors which are infrastructure, oil & gas, maritime and technology. To-date, BPMB has approved financing totaling RM7.2 billion for 33 PFI projects in the country mainly in infrastructure which includes education and healthcare sectors.
Partnering with Danajamin and BPMB as the Principal Adviser / Lead Arranger and Lead Manager for this transaction is Hong Leong Investment Bank Berhad.
For the past 8 years Danajamin has brought a total of 18 first-time bond/sukuk issuers into the market and has provided its guarantee for bond/sukuk programmes issued by a total of 32 viable Malaysian corporations across various sectors. To date Danajamin has brought about a market impact of approximately RM 16 billion.