Danajamin Nasional Berhad (“Danajamin”), the country’s first Financial Guarantee Insurer, today announced that it is guaranteeing RM30 million Tranche 1 Sukuk Murabahah Islamic Commercial Paper (“Tranche 1 ICP”) issued by Trinity Asia Ventures Berhad (“TAVB”), a wholly owned subsidiary of Trinity Group Sdn Bhd (“Trinity Group”).
Trinity Group has established a RM2.5 billion financial programme comprising RM1.5 billion Sukuk Musharakah IMTN Programme (“Sukuk Musharakah or IMTN Programme”) and a RM1.0 billion Sukuk Murabahah ICP Programme (“Sukuk Murabahah or ICP Programme”) through a special-purpose financial vehicle, TAVB.
The RM30 million Tranche 1 ICP of RM1.5 billion is the credit enhancement to Trinity Group’s RM52 million Tranche 1 Sukuk Musharakah Islamic Medium Term Notes Programme of RM1.5 billion (“Tranche 1 IMTN”).
The AA3-rated Tranche 1 IMTN marks Trinity Group’s first issuance and Danajamin’s third transaction involving the securitisation of progress billings of property development projects in Malaysia.
The Sukuk structure is developed, arranged and advised by NewParadigm Capital Markets Sdn Bhd, a corporate finance advisory firm licensed by the Securities Commission Malaysia, whilst the Lead Arranger and Lead Manager is Alliance Investment Bank Berhad.
This transaction allows Trinity Group, via TAVB, to monetise its progress billings from its underlying property development projects, namely Trinity Lemanja located in Kepong, Kuala Lumpur.
Mohamed Nazri Omar, Chief Executive Officer of Danajamin shared “We are delighted to support Trinity Group to raise financing and help them in their pursuit to build communities and enrich lives. With such spirit and passion to offer the best in the market, we hope our guarantee will propel the Group further with other quality property developments and add-value to the property market with more artistic and modern property development that cares for the environment.”
“Since Trinity’s inception in 2004, we have completed 3,500 units of residential homes while staying true to our brand promise of delivering projects with high value creation through our affordable luxury offerings to our customers,” said Dato’ Neoh Soo Keat, Managing Director of Trinity Group.
Dato’ Neoh Soo Keat added, “The proceeds made available from this issuance will allow Trinity Group to pursue its land-banking activities whilst ensuring the beneficial interest in the said projects are well protected. This allows for more efficient deployment of funds from a group treasury perspective especially in the current uncertain economic situation.”
To date, Danajamin’s guarantees have assisted 41 issuances, with a total guarantee size of RM10.9 billion. The total market impact of these deals, through risk-sharing collaboration with partner banks, stands at RM21.5 billion.
For more information on Danajamin and its services, please visit www.danajamin.com