KUALA LUMPUR: Danajamin Nasional Bhd, the country’s first financial guarantee insurer, announced that it is guaranteeing RM130mil tranche 1 sukuk murabahah Islamic commercial paper programme issued by Exsim Capital Resources Bhd (ECRB), a wholly-owned subsidiary of Exsim Development Sdn Bhd (Exsim Group).
In a release, Danajamin said that the RM130mil tranche 1 Islamic commercial paper of RM1bil is the credit enhancement to Exsim Group’s RM290mil tranche 1 sukuk musharakah Islamic medium term notes programme of RM2bil (tranche 1 IMTN).
The AA3-rated tranche 1 IMTN marks Exsim Group’s first successful issuance and Danajamin’s second transaction involving the securitisation of progress billings of property development projects in Malaysia.
“This transaction provides an avenue for Exsim Group, through ECRB, to free up the capital invested in the underlying property development projects, namely D’Nuri and Nidoz, both located in Desa Petaling, Kuala Lumpur. The funds made available from this issuance will allow Exsim Group to pursue other quality property developments,” said Danajamin.
Danajamin chief executive officer Mohamed Nazri Omar added in the statement: “Today, we are very proud to be supporting another corporate in the mid-market sector to raise financing.
“Since its establishment in 2008, Exsim Group has a sound track record, delivering close to 3,000 units of residential projects with a gross development value of RM2.59bil.
“We also recognised that Exsim Group is one of the property developers in the market that focuses on eco-friendly and sustainable projects. As a catalyst, it is essential that we at Danajamin continue to encourage the growth of socially responsible companies.”
“We look forward to facilitating the Exsim Group to realise their first corporate social responsibility involving the development of an affordable housing project (D’Nuri). Despite the challenging property market, both D’Nuri and Nidoz appealed to house buyers through the combination of quality, affordability and strategic location. The projects have seen a solid take- up with close to 100% as of the fourth quarter of 2018. We hope our participation in this transaction will propel Exsim Group further and bolster the government’s initiative towards affordable housing scheme.”
The sukuk structure is developed, arranged and advised by NewParadigm Capital Markets Sdn Bhd, a corporate finance advisory firm licensed by the Securities Commission, while the lead arranger and lead manager is United Overseas Bank (M) Bhd.
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