PETALING JAYA: The Government's bond guarantee agency, Danajamin Nasional Bhd, expects to introduce bond guarantees with short term financing from banks to meet demand from companies in the first half of this year.
The agency's chief executive officer Ahmad Zulqarnain Onn told StarBiz in an email reply that several deals with banks were currently being studied.
“As this is the first time we're working on such deals, it requires some alignment and coordination between the parties involved. We expect the first deal to be rolled out in the first half,” he added.
Ahmad Zulqarnain had in late January said Danajamin was looking to support the bond market by partnering with a bank that could provide short term financing while the agency focused on guaranteeing long term financing. He elaborated that there were many ways that the agency could partner with banks.
“An example is where we co-guarantee a deal with a bank. We're open to more opportunities to work with banks. Depending on the size and nature of the deals, we're happy to discuss and look into these opportunities to complement the market,” he said.
He said this would be a win-win partnership for the private sector and the Government as the agency's role was to complement the banking industry and to catalyse the development of the bond market so that it remained an important alternative source of financing for corporations.
“We'll be working together to ensure businesses have the optimal financing arrangement and the correct asset-liability matching,” Ahmad Zulqarnain said. To date, the agency has guaranteed RM885mil worth of bonds, of which RM630mil has been issued.
Bernama, quoting him, reported that Danajamin had approved 21 bond guarantees for companies in various industries.
Ahmad Zulqarnain had earlier signed an Al-Kafalah guarantee facility agreement for property developer Gema Padu Sdn Bhd's RM170mil seven-year Islamic securities programme.
“Danajamin's financial guarantee will enable Gema Padu to raise bonds to finance another 85 property development projects in Kota Warisan, Sepang,” Ahmad Zulqarnain said at a media briefing in Sepang following the signing ceremony.
Besides the 600-acre Kota Warisan township, Gema Padu's businesses include plantation operations, goat farming and civil construction and investment holding.
The signing ceremony was jointly witnessed by Melaka Governor Tun Mohd Khalil Yaakob, who was the guest of honour, and Danajamin chairman Datuk Seri Abdul Hamidy Hafiz. Signing the agreement on behalf of Gema Padu was Major (Rtd) Datuk Ng Bon Chong.
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