Property developer Exsim Group is raising RM3 billion from two sukuk issuances to refinance loans as well as buy land and fund its working capital needs.
The issuances include a RM2 billion Islamic medium-term note programme (IMTN programme) that the company claims to be the first sukuk in Malaysia to monetise future sales earnings of a commercial real estate project.
The other is a RM1 billion Islamic commercial papers (ICP). The RM3 billion sukuk marks Exsim’s second Islamic debt capital market transaction arranged by United Overseas Bank (Malaysia) Bhd.
Exsim issued its first sukuk through UOB Malaysia in January last year to monetise its residential real estate earnings. The RM3 billion sukuk was structured by NewParadigm and guaranteed by Danajamin Nasional Bhd (DanaJamin).
Eksim managing director Lim Aik Hoe said each tranche under the IMTN programme would be secured against a specific commercial development project. The first tranche would be backed by the executed sales and purchase agreements of Scarlets Suites.
“The sukuk will help Exsim achieve our next level of growth and provide us liquidity for future development projects,” Hoe said at the signing ceremony with UOB Malaysia and Danajamin.
Scarletz Suites is a new and highly anticipated project of the Exsim Group here. A serviced residence of 604 units housed within a single tower of 49 storeys, Scarletz Suites is estimated to be completed by 2022.
Lim said the group aims to have 30 per cent sales growth for its property by this year. He added that to date, Exsim had launched a total of 21 developments with a gross development value of RM8 billion with another RM18 billion in the pipeline.
Danajamin chief executive officer Mohamed Nazri Omar commended Exsim’s commitment as a socially responsible developer with its emphasis on innovative green features.
“Exsim is recognised in the market for its timely development, completion and delivery of real estate projects, as well as consistently demonstrating take up rates of more than 90 per cent for its projects. It is our mandate to support growth of mid-size companies in a sustainable manner. At the same time, we hope to encourage our clients to make environmental awareness, one of their top priorities,” he added.
Source New Straits Times