Danajamin guarantees RM100 million TSH sukuk programme

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KUCHING: Danajamin Nasional Bhd (Danajamin) yesterday announced that the first tranche of TSH Sukuk Musyarakah Sdn Bhd’s (TSH) 11-year RM100-million Islamic Medium Term Notes (IMTNs) programme, guaranteed by Danajamin, had been issued.

In Danajamin’s statement from Kuala Lumpur, the issuance that amounted to RM50 million with a seven-year maturity, had been fully subscribed.

“The financial guarantee provided by Danajamin enhanced the sukuk’s rating to AAAIS(fg), allowing TSH to access the sukuk market to raise longer tenure financing. This is line with Danajamin’s objective to assist viable non-AAA companies to tap the sukuk or bond market for long term fixed rate financing,” Danajamin said in the statement.

TSH is a special-purpose vehicle wholly owned by TSH Resources Bhd, a public listed company whose principal activity is on the operations of oil palm plantations.

Danajamin, the country’s first financial guarantee insurer, was established by the government to be a catalyst to stimulate and further develop the domestic bond and sukuk market. To date, it has provided guarantees for almost RM1 billion bond programmes.