by NUR HANANI AZMAN / pic by TMR FILE

BANK Pembangunan Malaysia Bhd (BPMB) today announced the signing of agreements with Credit Guarantee Corporation Malaysia Bhd (CGC) and Minister of Finance (Incorporated) (MOF Inc) for the 100% acquisition of Danajamin Nasional Bhd.

This exercise is 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 first phase of the plan will see BPMB acquiring all of Danajamin’s shares from its current shareholders, namely CGC and MOF Inc, turning Danajamin into a wholly-owned subsidiary of BPMB.

BPMB chairman Datuk Seri Nazir Razak said DFIs are an important component of any financial system.

“The strengthening of our DFIs will enhance their ability to support national economic development by availing capital to borrowers neglected by private banks, providing subsidised capital for priority sectors and crowding-in private capital to key segments of the economy.

“Today’s signing is a significant milestone as it not only confirms the merger of BPMB and Danajamin, but formally sets in motion a new phase for Malaysia’s DFIs,” he said in a statement.

BPMB is fully supportive of the government’s efforts and will work together with all stakeholders to ensure that the DFI ecosystem is supportive of the needs of the nation, especially in these challenging times.

“The economic crisis caused by the pandemic is a strong reminder for us all of the importance of DFIs as countercyclical lenders for the economy,” he elaborated.