Danajamin partners CIMB in RM305m club deal for Great Realty

PETALING JAYA: Danajamin Nasional Bhd, the country's financial guarantee insurer, yesterday announced its collaboration with CIMB Bank Bhd in a club deal worth RM305 million for Great Realty Sdn Bhd for up to 15 years.
The club deal comprises a RM170 million Danajamin guaranteed bonds programme of up to 15 years and a RM135 million term loan facility from CIMB Bank of up to 10 years.
Great Realty, a wholly-owned special purpose vehicle of Belleview Sdn Bhd, was incorporated to develop Aman Central, a one-stop shopping mall in Alor Star, Kedah. Strategically located in the Central Business District, the 8-storey shopping mall will be the biggest lifestyle mall in Alor Star when completed in the second quarter of 2015.
Belleview has 30 years of track record in property development, property management and property investment in Penang and Kedah and is helmed by Datuk Sonny Ho Kiong Chan.
The first tranche of RM30 million guaranteed bonds was issued and fully subscribed yesterday. Proceeds from the guaranteed bonds issued will be used to finance the construction of Aman Central.
Danajamin CEO Mohamed Nazri Omar said: "This transaction demonstrates Danajamin's collaborative approach with our banking partners towards structuring financing solutions to meet the unique needs of our clients."
CIMB Investment Bank Bhd was the lead arranger for the transaction.
A club deal is a type of syndicated loan provided by a group of lenders. It is also a transaction whereby a group of private equity firms pool their resources to acquire a company.