BANK PEMBANGUNAN MALAYSIA COMPLETES THE ACQUISITION OF DANAJAMIN NASIONAL
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Friday, 12 November 2021, Kuala Lumpur – Bank Pembangunan Malaysia Berhad (“BPMB”) today announced the completion of all the conditions precedent in the Sale and Purchase Agreements (“SPAs”) with Credit Guarantee Corporation Malaysia Berhad (“CGC”) and Minister of Finance (Incorporated) (“MOF Inc.”) for the 100% acquisition of Danajamin Nasional Berhad (“Danajamin”). The purchase consideration is based on Danajamin’s audited net asset value (NAV) as at 30th June 2021.
The acquisition transforms Danajamin into a wholly-owned subsidiary of BPMB. This is in line with the Government’s aim of improving the development finance sector to better support businesses and national development as a whole.
Commenting on this significant milestone, BPMB’s Chairman, Dato’ Sri Nazir Razak said, “As one of Malaysia’s oldest DFIs, we are cognisant of the need for BPMB to play an enhanced role to bolster Malaysia’s economic development to meet its medium to long-term growth aspirations. Today marks a historic period in the DFI space as we celebrate the conclusion of the merger with Danajamin.”
“In the immediate future, we will remain primarily a wholesale or medium to large corporate DFI and it will be business as usual for both organisations - BPMB and Danajamin. We look forward to integrating the operations of both institutions in due course and to extend our coverage into other customer segments in the future.” Nazir elaborated.
The merger is expected to generate revenue and cost synergies over time as the two institutions increasingly share resources and integrate operations. “As the phase one of a bigger plan to consolidate DFIs, we are determined that this merger will prove to be a benchmark for successful DFI mergers.” Nazir concluded.
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ABOUT BANK PEMBANGUNAN MALAYSIA BERHAD
Bank Pembangunan Malaysia Berhad (“BPMB”) was incorporated on 28 November 1973 as a development financial institution. BPMB’s role includes the provision of various corporate financing facilities and training and advisory services, particularly to Bumiputera entrepreneurs. Today, BPMB is focused on medium to long-term financing in sectors deemed strategic to national economic development.
Owned by Minister of Finance (Incorporated), BPMB has been accorded the highest rating of ‘AAA’ by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. It is regulated and supervised by Bank Negara Malaysia under the Development Financial Institution Act 2002.
BPMB is strongly capitalised and positioned for growth. As at 31st December 2020, BPMB Group has Total Assets valued at RM23.5billion and shareholders’ funds of RM7.9billion.
ABOUT DANAJAMIN
Danajamin Nasional Berhad is Malaysia’s first and only Financial Guarantee Insurer. Established in May 2009, Danajamin’s objective is to ensure that financially viable corporates continue to be able to access the bond market for their long-term financing needs and at the same, be an enabler to further develop the domestic bond and sukuk market.
To date, Danajamin’s guarantee have assisted 42 issuances across various sectors; and brought about a market impact of approximately RM22.7 billion through its risk sharing collaboration with partner banks.
Danajamin is ‘AAA’ rated by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. It is regulated and supervised by Bank Negara Malaysia under the Financial Services Act 2013. Danajamin is equally owned by Minister of Finance (Incorporated) and Credit Guarantee Corporation Malaysia Berhad.
Danajamin’s total asset and total shareholder’s equity stands at RM2.71 billion and RM1.9 billion respectively as at 31 December 2020.