EXSIM ISSUES SECOND SUKUK PROGRAMME TOTALLING RM3 BLN

KUALA LUMPUR, Feb 25 -- Exsim Group has launched its second Sukuk Programme totalling RM3 billion comprising a RM2 billion Islamic Medium-Term Note Programme (IMTN) and a RM1 billion Islamic Commercial Papers Programme (ICP) through its special purpose vehicle company Exsim Ventures Bhd.

United Overseas Bank Malaysia will act as the Principal Adviser, Lead Arranger and Lead Manager for the programme while Danajamin Nasional Bhd will provide the guarantees for the standby working capital and liquidity facilities for tranche 1.

Managing director Lim Aik Hoe said the sukuks were issued to refinance its existing borrowing, to purchase new land and to help finance its working capital requirements.

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“Exsim had successfully launched another landmark Sukuk programme but this time around it is the first Sukuk structure in Malaysia to monetise the future sales earnings of a commercial real estate development,” he said in his speech during the signing between Exsim, UOB Malaysia and Danajamin here today.

He explained that IMTN would be secured against a specific commercial development project, with the first tranche backed by the executed sales and purchase agreements of Scarletz Suites, the group’s second commercial property development in Kuala Lumpur.

The first tranche of the IMTN programme carries a credit rating of AA3/Stable by RAM Ratings Services Bhd while the ICP programme is unrated and will have its first tranche guaranteed by Danajamin and fully underwritten by UOB Malaysia, he noted.

Lim said the group had also issued its first sukuk programme in January 2019 through UOB Malaysia totalling RM3 billion to monetise its residential real estate earnings.

“The Sukuk programmes will help the group to achieve our next level of growth and provide us liquidity for future development projects. 

“With its innovative structure the programme would enable Exsim to deliver more value to its stakeholders and help us finance the capital expenditure and working capital of our new and existing commercial real estate development projects,” he said.

He said since its establishment in 2008, the group has launched 21 developments with a total gross development value of RM8 billion, with another RM18 billion in the pipeline.

“In 2019, the group managed to hit a record close to RM1.5 billion in sales, and moving forward this year, we will be stamping our mark in other states such as Perak, Johor and Penang.

“We will strive to perform better by targeting a 30 per cent increase in sales despite the current market slowdown,” he said

Meanwhile, Danajamin chief executive officer Mohamed Nazri Omar said Exsim is recognised in the market for its timely development, completion and delivery of real estate projects, as well as consistently demonstrating a take-up rate of over 90 per cent for their projects.

He noted Exsim’s emphasis on innovative green features, with six of its recent developments certified under the Green Building Index.

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

-- BERNAMA