UOB Malaysia places out Exsim's RM300mil Islamic medium-term notes

UOB Malaysia deputy chief executive officer Ng Wei Wei

KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) has successfully priced and placed out EXSIM’s issuance of four-year RM300 million Islamic medium-term notes (IMTN) at a fixed profit rate of 5.1 per cent per annum.

In a statement, UOB Malaysia said this issuance is the third tranche of the property developer’s RM2 billion Sukuk Musharakah Programme that monetises the future earnings of its green residential development in the Klang Valley.

UOB Malaysia is the lead arranger and lead manager of the IMTN issuance.

"As the Malaysian property market has shown stronger signs of recovery in the first quarter of 2022, the IMTN issuance was well received by quality institutional investors, including insurance companies, asset management companies, banks and private banks,” it said.

UOB Malaysia deputy chief executive officer Ng Wei Wei said its support to EXSIM is part of the financing solutions offered under the UOB Sustainable Finance Framework for Green Building Developers and Owners and the UOB Smart City Sustainable Finance Framework.

"These frameworks were developed to help more Asian companies advance their businesses responsibly, while reducing their carbon footprint," she said.

The sukuk programme, established in 2019, was structured by NewParadigm Capital Markets Sdn Bhd through a special-purpose vehicle, EXSIM Capital Resources Bhd.

Under the programme, the IMTN issuance is also supported by RM75 million Islamic commercial papers, fully-underwritten by UOB Malaysia to meet the IMTN’s liquidity requirement.

In addition, UOB Malaysia successfully priced and placed out EXSIM’s IMTN second tranche issuance under the sukuk programme in June 2021 to monetise the company’s future earnings of two other sustainable residential developments in the Klang Valley.

Meanwhile, EXSIM managing director Lim Aik Hoe said the IMTN issuance will be secured against and backed by the executed sales and purchase agreements of EXSIM’s D’Erica Residences.

The property development, once completed, is expected to attain Gold Rating certifications from GreenRE.

According to Lim, GreenRE's standards and certification process are in line with the United Nations Sustainable Development Goals and the World Green Building Council’s commitment to developing buildings that produce as much (or more) energy than they consume or aim to achieve a net zero future.

Established in 2008, EXSIM specialises in developing high-end residential, commercial and industrial real estate projects within the Klang Valley. To date, it has launched 29 developments with a total gross development value of RM12 billion, with another RM11.6 billion’s worth in the pipeline. - Bernama