Friday, June 17, 2011

Danajamin part guarantees Ranhill Powerton's RM710m debt notes

KUALA LUMPUR: Danajamin Nasional Bhd says it is only part guaranteeing Ranhill Powertron II Sdn Bhd's RM710 million 18-year Islamic medium term notes programme, specifically the longer end of the issuance.

Danajamin said on Friday, June 17 this was the first of its kind transaction for the financial guarantee insurer where it is only part guaranteeing a bond/sukuk programme,

Of the RM710 million programme, RM360 million (with maturities from one to 11 years) is issued on a standalone basis. The remaining RM350 million (with maturities from 12 to 18 years) is guaranteed by Danajamin. The standalone portion is rated AA while the Danajamin-guaranteed portion, is rated AAAIS(fg).

The RM690 million portion of the sukuk programme was issued on Friday.

Danajamin chief executive officer Ahmad Zulqarnain Onn said: 'The issuance is a result of Danajamin working with Ranhill Powertron II and their joint lead arrangers to come out with an optimal financial solution for the company'.

He said Danajamin was pleased to have helped Ranhill Powertron II tap the longer end of the sukuk market, which was less liquid.

'This ties in with Danajamin's objective to assist companies in accessing long term financing and to be a catalyst to stimulate the bond/sukuk market,' he said.

Danajamin has, to date, provided guarantees for RM2.0 billion bond programmes.

Ranhill Powertron II is an independent power producer and it owns and operates the 190MW Rugading combined cycle power plant in Kota Kinabalu.

It has a 21-year power purchase agreement with Sabah Electricity Sdn Bhd to supply electricity to meet Sabah's growing demand for power. The power plant was constructed in 2009 and it has been operating.

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