KUALA LUMPUR: Danajamin Nasional Bhd will guarantee Tranche 1 of KAB Energy Power Sdn Bhd (KABEP), a wholly-owned subsidiary of Kejuruteraan Asastera Bhd (KAB), for its inaugural issuance from the RM500.0 million multi-currency Islamic medium-term notes programme.
The proceeds from the sukuk murabahah programme will propel KAB's expansion into the renewable energy or green energy solutions segment.
The programme will help fund KAB's future energy-related ventures, greenfield projects and brownfield assets in Malaysia and across Asia, including Vietnam, Indonesia and India.
Danajamin chief executive officer Mohamed Nazri Omar said the company is pleased to begin 2022 by extending support to KAB's sukuk murabahah programme through its financial guarantee insurance (FGI).
"We hope this will complement KAB's investment in this new initiative and provide added confidence to the programme's investors.
"By encouraging energy efficiency initiatives, we want to continue playing a significant role in contributing to the nation's economic sustainability and leave a positive impact in minimising the environmental footprint.
"We hope to see more Malaysian companies participating in the green economy in the future," Mohamed Nazri said in a statement today.
KAB managing director Datuk Lai Keng Onn said this marks a significant milestone for the company and with the support from Danajamin and Public Investment Bank Bhd.
"Danajamin's FGI for our sukuk murabahah programme will bring us a step closer to realising the government's aspiration in promoting green technology and sustainable energy initiatives in the private sector.
"This issuance has been earmarked for our growth and signifies our continuous effort towards value creation in the energy sector.
"We are actively looking out for greenfield projects and brownfield energy assets to invest in both locally and regionally, such as solar power generation, hydropower plants and biogas plants," he said.
Proceeds from the issuance will be used for a 2.2-megawatt waste heat recovery facility at Safran Landing System Malaysia Sdn Bhd, a leading French manufacturer of aircraft landing gear and braking systems globally.
The waste heat recovery facility is located at Sendayan TechValley in Negeri Sembilan and is currently operational.
Danajamin's financial guarantees have assisted 44 issuances, with a total guarantee size of RM10.9 billion.
Through risk-sharing collaboration with partner banks, the total market impact of these deals stands at RM23.2 billion.