Chellam Plantations’ RM300 million sukuk gets Danajamin guarantee

PETALING JAYA: Danajamin Nasional Bhd is guaranteeing a 17-year sukuk murabahah programme amounting to RM300 million for Chellam Plantations (Sabah) Sdn Bhd, marking its 30th guarantee issuance.
The first tranche of the programme amounting to RM150 million with a tenure of up to 17 years, rated AAA(fg) by RAM Rating Services Bhd, was successfully issued and subscribed last Friday. The balance will be issued at a later date.
In a statement last Friday, the country’s financial guarantee insurer said the funds from the sukuk issuance will support Chellam Plantations’ new planting in Kalimantan and expansion in Indonesia. Proceeds from the sukuk will also be used to refinance its outstanding borrowings and finance its capital expenditures.
The joint principal advisers, joint lead arrangers and joint lead managers for this transaction are RHB Investment Bank Bhd and OCBC Al-Amin Bank Bhd.
Danajamin has guaranteed both conventional and Islamic issuances across various industries such as property development and real estate, oil and gas, power and consumer related products since 2009.
Including this guarantee, Danajamin has guaranteed issuances approximating RM8.3 billion. Following redemptions of RM1.9 billion to date, the current outstanding Danajamin-guaranteed issuances stands at about RM6.4 billion.