Exsim raises RM3 bil via two sukuk issuances


  • Corporate News
  • Wednesday, 26 Feb 2020

(First from left): EXSIM Group managing director Lim Aik Hoe and Danajamin Nasional chief executive officer Mohamed Nazri Omar (second from left) at the launch of EXSIM's sukuk programmes yesterday.

KUALA LUMPUR: EXSIM Development Sdn Bhd (EXSIM Group) has issued its second sukuk programme worth RM3bil to refinance its existing borrowings, purchase new land and finance its working capital.

The sukuk programme comprised RM2bil Islamic Medium-Term Note programme (IMTN Programme), and a RM1bil Islamic Commercial Papers Programme (ICP Programme). The sukuk is issued via EXSIM’s special purpose vehicle, EXSIM Ventures Bhd.

EXSIM Group managing director Lim Aik Hoe said the group has established the IMTN programme, which is the first sukuk structure in Malaysia to be secured against the future earnings of a commercial development project, Scarletz Suites.

“The sukuk programmes will help achieve its next level of growth and provide with liquidity for future development projects.

“It will also allow EXSIM to help us finance capital expenditure and working capital requirements of our new and existing commercial development projects, ” he told reporters during EXSIM Group's launch of the sukuk programmes here.

Scarlet Suites is completely sold out and is expected to be completed by the third quarter of next year.

The first tranche of the IMTN programmes carries a credit rating of AA3/stable assigned by Ram Ratings Services Bhd.

In Jan 2019, the group had also issued its first sukuk programme totalling RM3bil through UOB Malaysia to monetise its residential real estate earnings. For this year, Lim expects the group to record 30% growth in EXSIM’s property sales. In 2019, the group recorded property sales close to RM1.5bil.

“ Moving forward, we will be stamping our marks in other states such as Ipoh, Johor and Penang.

“We strive to perform much better than last year and we are committed to achieve that despite the current property market slowdown, ” he noted.

On the other hand, the ICP Programme, which is unrated, will have the its first tranche guaranteed by Danajamin Nasional and will be fully underwritten by UOB Malaysia.

UOB Malaysia is the principal advisor, lead arranger and leader manager of the Sukuk programmes while Danajamin Nasional will provide guarantee for the standby working capital and liquidity facilities for Tranche 1.

Danajamin Nasional chief executive officer Mohamed Nazri Omar praised EXSIM for its timely development, completion and delivery of real estate projects with consistently demonstrating take-up rates of more than 90% for their projects.

“ It is our mandate to support growth of mid-sized companies in a sustainable manner, ” he added.

To-date, EXSIM has launched a total of 21 development projects with a gross development value of RM8bil with another RM18bil in the pipeline.

Meanwhile, UOB Malaysia managing director and country head of wholesale banking Ng Wei Wei said that EXSIM has once again placed its confidence in UOB Malaysia’s Islamic capital markets capabilities.

“ This confidence is also testament of our deep understanding of the real estate sector and our capabilities to arrange a first-of-its-kind Sukuk programme to monetise the future earnings of a commercial real estate asset, ” she added.

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