KUALA LUMPUR (Oct 23): Danajamin Nasional Bhd has teamed up with Bank Pembangunan Malaysia Bhd to co-guarantee the issuance of RM639 million worth of Islamic debt notes by TRIplc Medical Sdn Bhd (TMSB), a wholly-owned unit of TRIplc Bhd.

This guarantee of the 18-year senior sukuk murabahah marks Danajamin's second guarantee facility extended to the TRIplc Group after the latter's previous sukuk issuance to build Universiti Teknologi Mara (UiTM) in Puncak Alam, Selangor.

The notes, successfully issued and subscribed today, is to raise funds to part finance the development of a new teaching hospital and medical academic centre in UiTM's Puncak Alam campus, said Danajamin in a statement.

TMSB inked a 25-year concession agreement with the Malaysian government in February last year, for TMSB to undertake the project.

The sukuk is rated AA1/stable by RAM Rating Services Bhd premised on the support from the co-guarantors' irrevocable and unconditional financial guarantee during the construction period. This means that the guarantee will not be required once the project has been completed, Danajamin said.

Danajamin chief executive officer (CEO) Mohamed Nazri Omar said this collaboration marks the company's contribution towards the country's healthcare sector.

"From a developmental perspective, we have undertaken a number of notable transactions across various industries.

"We will continue to be innovative in how we apply our financial guarantee to create rating diversity and at the same time find new ways to bring developmental and economic impact to Malaysia," the financial guarantee insurer said in a statement today.

The principal adviser, lead arranger and lead manager for this transaction is Hong Leong Investment Bank Bhd.

Meanwhile, Bank Pembangunan president cum group CEO Shaharuddin Zainuddin said the bank's participation in this project reflects its continued commitment to provide financing to the four mandated sectors which are infrastructure, oil and gas, maritime and technology.

To date, Bank Pembangunan has approved financing totalling RM7.2 billion for 33 private finance initiative projects in the country mainly in infrastructure which includes education and healthcare sectors.

"For the past eight years Danajamin has brought a total of 18 first-time bond/sukuk issuers into the market and has provided its guarantee for bond/sukuk programmes issued by a total of 32 viable Malaysian corporations across various sectors. To date Danajamin has brought about a market impact of approximately RM 16 billion," the statement added.