Danajamin guarantees RM130m sukuk by Masteel

TheEdge Fri, Nov 30, 2018 05:08pm - 5 years View Original


KUALA LUMPUR (Nov 30): Danajamin Nasional Bhd is guaranteeing a five-year RM130 million Sukuk Ijarah Programme issued by Malaysia Steel Works (KL) Bhd (Masteel).

The sukuk is rated AAAIS(fg) by Malaysian Rating Corp Bhd (MARC), following the backing of an irrevocable and unconditional Kafalah Guarantee provided by Danajamin.

“Masteel has almost 50 years of track record. They have endured several crises throughout their establishment and have since grown from strength to strength as one of the key players in the industry. Through our guarantee, we hope to instill investors’ confidence and assist Masteel to successfully deliver their business objective and continue to contribute meaningfully to the nation’s economy," said Danajamin chief executive officer Mohamed Nazri Omar in a statement today.

Masteel managing director and chief executive officer Datuk Seri Tai Hean Leng said the funds available from this issuance will be used primarily for refinancing, working capital and for the acquisition of a new melting technology package.

"This technology will be a game changer for Masteel, putting us well ahead of the competition. The issuance will not only improve our liquidity position, but will enable Masteel to expand our operation, in line with the installation of the new facilities,” he added.

The principal adviser/lead arranger, lead manager, Shariah adviser and facility agent for this transaction is Kuwait Finance House (Malaysia) Bhd.

To date, Danajamin has guaranteed 37 issuers, with a total guarantee size of RM10.6 billion.

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