Danajamin to guarantee KAB’s RM500mil sukuk


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PETALING JAYA: Danajamin Nasional Bhd will guarantee the first tranche of KAB Energy Power Sdn Bhd’s inaugural issuance from its RM500mil multi-currency Islamic medium term notes (sukuk murabahah programme).

KAB Energy is a wholly-owned subsidiary of Kejuruteraan Asastera Bhd’s (KAB).

Proceeds from the issuance will help KAB’s expansion into the renewable energy or green energy solutions segment and will help fund its future energy related ventures, greenfield projects and brownfield assets in Malaysia as well as across Asia, including Vietnam, Indonesia and India.

“We are pleased to begin 2022 by extending our support to KAB’s sukuk murabahah programme through our financial guarantee insurance (FGI). We hope this will complement KAB’s investment in this new initiative and provide added confidence to the programme’s investors,” Danajamin chief executive officer Mohamed Nazri Omar said in a statement.

“By encouraging energy efficiency initiatives, we want to continue playing a significant role in contributing to the nation’s economic sustainability and leave a positive impact in minimising the environmental footprint. We hope to see more Malaysian companies participating in the green economy in the future,” he added.

Meanwhile, KAB managing director Datuk Lai Keng Onn said the company is actively looking out for greenfield projects and brownfield energy assets to invest in both locally and regionally. These include solar power generation assets, hydropower plants and biogas plants.

“Danajamin’s FGI for our sukuk murabahah programme will bring us a step closer to realising the government’s aspiration in promoting green technology and sustainable energy initiatives in the private sector. This issuance has been earmarked for our growth and signifies our continuous effort towards value creation in the energy sector,” said Lai.

Proceeds from the issuance will be used for a 2.2-megawatt waste heat recovery facility at Safran Landing System Malaysia Sdn Bhd, a leading French manufacturer of aircraft landing gear and braking systems globally.

The waste heat recovery facility is located at Sendayan TechValley in Negeri Sembilan and is currently operational.

To date, Danajamin’s financial guarantees have assisted 44 issuances, with a total guarantee size of RM10.9bil.

The total market impact of these deals, through risk-sharing collaboration with partner banks, stands at RM23.2bil.

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