Danajamin and Skyworld in financing deal

Skyworld founder and group managing director Datuk Ng Thien Phing

KUALA LUMPUR: Danajamin Nasional Bhd is guaranteeing a credit enhancement facility for Tranche 1 of the 12-year RM600mil Sukuk Musharakah Islamic Medium-Term Note (IMTN) Programme to be issued by SkyWorld Capital Bhd, a sole-purpose vehicle wholly-owned by SkyWorld Development Sdn Bhd. 

In a statement, Skyworld said the credit enhancement facility was required in order for Tranche 1 of the IMTN to be accorded a AA3/Stable rating by RAM Rating Services Bhd in the Sukuk market.

This first issuance is made against the progress billings of the SkyAwani 1 development project in Sentul, which is Skyworld’s first affordable housing project under the Rumah Mampu Milik Wilayah Persekutuan 

This confirms a report by StarBiz published last week. StarBiz reported that SkyWorld will be the first developer to embark on a bond issue, which is structured and based on a programme for gradual draw-down.

NewParadigm Capital Markets Sdn Bhd, a financial boutique advisory firm, has been working on the structure for two years and is said to have received all regulatory approvals.

SkyWorld is raising some RM50mil under Tranche 1 of the RM600mil Sukuk Musharakah Programme via a special purpose vehicle, SkyWorld Capital Bhd, for its SkyAwani Residence development located in Sentul, Kuala Lumpur.

The project has achieved 100% sales, which allows for the bond to be structured. It will mark the first structured syariah complaint finance programme anchored on billings from property progress payments.

Danajamin CEO Mohamed Nazri Omar said the guarantee was the first structured transaction in Malaysia to monetise progress billings of a property development project. 

“We are pleased to play a role in helping property developers such as Skyworld Capital by providing partial or full guarantee for affordable housing projects,” he said. 

Skyworld founder and group managing director Datuk Ng Thien Phing this transaction with Danajamin signalled a positive start for SkyWorld Development Group. 

“We have been growing from strength to strength. All our SkyAwani 1 and 2 recorded 100% take-up. All our current and future developments are location-centric – within Kuala Lumpur region. With over 130 acres of quality land banks totalling more than RM13bil in gross development value, we are on the right track of transforming the city and unlocking our land value,” Ng said. 

The financial adviser for this transaction is NewParadigm, whilst the lead arranger and lead manager is United Overseas Bank (M) Bhd.