Danajamin guarantees RM150 million berjayacity bonds

22 August 2010
Source : Danajamin

Danajamin Nasional Berhad (“Danajamin”) announces that it is guaranteeing RM150 million ten-year Medium Term Note Programme of BerjayaCity Sdn Bhd (BerjayaCity), an oil palm plantation company.

Of the RM150 million bond programme, RM105 million were issued today. The issuance comprises 6 tranches with tenure ranging from 3 to 8 years to match BerjayaCity’s financing requirement. The bonds were issued at AAA(fg) rating and fully subscribed.

Ahmad Zulqarnain Onn, Chief Executive Officer of Danajamin said, “BerjayaCity is the first plantation company that Danajamin is guaranteeing and we are very pleased to be able to provide support to the oil palm industry which is a key driver of the country’s economy. The long-term fixed rate financing made available through Danajamin’s guarantee helps to provide a better match to BerjayaCity’s financing requirement.”

The issuer, BerjayaCity, is an oil palm plantation company with over 15 years of business track record. The funds raised from the bonds issuance will be used for, amongst others, financing a replanting exercise.

“Danajamin’s guarantee enables more companies to tap the bond market for alternative funding option especially for projects which require fixed rate medium to long term funding. The increasing issuance will bode well for the development of the country’s bond market as a key source for fund raising,” added Zulqarnain.