The Star - Bank Pembangunan completes merger with Danajamin
Kuala Lumpur, 21 March 2023
Bank Pembangunan Malaysia Bhd (BPMB) has completed its merger with Danajamin Nasional Bhd, following the transfer of Danajamin’s business and undertakings to BPMB effective March 1.
The merger exercise began in September 2021 with agreements signed between BPMB and Danajamin’s then-shareholders, Credit Guarantee Corporation Malaysia Bhd (CGC) and Minister of Finance (Incorporated) (MOF Inc) for the 100% acquisition of the financial guarantee insurer.
In a statement, BPMB said following the completion of the business transfer scheme (BTS) exercise earlier this month, the merger formally concluded with the surrendering of Danajamin’s license to Bank Negara on March 6.
This merger was part of the Government’s medium-term plan to strengthen and align the mandates of development financial institutions (DFIs) to improve the national development finance ecosystem.
“The integration of BPMB and Danajamin is the first step towards a stronger and more streamlined DFI sector in Malaysia, better placed to support businesses and targeted economic sectors. BPMB stands ready to move forward with further mergers, at the Government’s direction,” BPMB group chairman Tan Sri Nazir Razak said.
Meanwhile, BPMB group chief executive officer Roni Abdulwahab said the completion of this merger coincides with its 50th anniversary.
“We have been providing impact capital for national development since 1973. Now as a united entity, we will leverage on our combined experience, expertise and diversity to serve our purpose and customers better.”