In line with the government’s medium-term plan to streamline the mandates of development financial institutions (DFIs) to improve the national development finance ecosystem, Bank Pembangunan Malaysia Bhd today entered into an agreement with Credit Guarantee Corp Malaysia Bhd (CGC) and Minister of Finance Inc for the 100% acquisition of Danajamin Nasional Bhd.
Danajamin will be a wholly-owned subsidiary of the bank following the bank’s acquisition of shares from MOF Inc and CGC.
“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,” chairman Datuk Seri Nazir Razak says in a statement.
He says the merger means the bank will work together with all stakeholders to ensure the DFI ecosystem is supportive of the needs of the nation.
“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.”
For CGC chairman Datuk Mohammed Hussein, the merger will result in synergistic value which will create greater scale and take on wider mandates with greater development impact under the enlarged umbrella of BPMB.
