EXSIM has established the first Islamic Medium-Term Note Programme in Malaysia to be secured against the future earnings of a commercial real estate development
KUALA LUMPUR, 25 February 2020 – EXSIM Group (EXSIM) has established a RM2 billion Islamic Medium-Term Note Programme (IMTN Programme) and a RM1 billion Islamic Commercial Papers Programme (ICP Programme) to refinance its existing borrowings, to purchase new land and to help finance its working capital requirements. United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is the Principal Adviser, Lead Arranger and Lead Manager of the Sukuk Programmes while Danajamin Nasional Berhad (Danajamin) will provide the guarantees for the standby working capital and liquidity facilities for tranche 1. The two financially innovative Sukuk Programmes, which are structured by NewParadigm Capital Markets Sdn Bhd1 (NewParadigm), will be established through a special-purpose vehicle, EXSIM Ventures Berhad (EXSIM Ventures).
The IMTN Programme is the first Sukuk structure in Malaysia to monetise the future sales earnings of a commercial real estate development project. Each tranche under the IMTN programme will be secured against a specific commercial development project, with the first tranche backed by the executed sales and purchase agreements of Scarletz Suites2. Scarletz Suites is EXSIM’s second commercial property development in the centre of Kuala Lumpur.
The first tranche of the IMTN Programme is carrying a credit rating of AA3/Stable assigned by RAM Ratings Services Berhad. The ICP Programme, which is unrated, will have its first tranche guaranteed by Malaysian financial guarantee insurer, Danajamin, and will be fully underwritten by UOB Malaysia.
Mr Lim Aik Hoe, Managing Director, EXSIM, said, “The Sukuk Programmes will help EXSIM achieve our next level of growth and provide us with liquidity for future development projects. With the support of UOB Malaysia and our partners, this innovative structure will enable EXSIM to deliver more value to its stakeholders and help us to finance the capital expenditure and working capital requirements of our new and existing commercial real estate development projects.”
The RM3 billion Sukuk Programmes mark EXSIM’s second Islamic debt capital market transaction arranged by UOB Malaysia. EXSIM issued its first Sukuk Programme through the Bank in January 2019 to monetise its residential real estate earnings which was also structured by NewParadigm and guaranteed by Danajamin.
Ms Ng Wei Wei, Managing Director and Country Head of Wholesale Banking, UOB Malaysia, said, “We are honoured 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. UOB Malaysia has lead-arranged a number of significant Islamic debt transactions via our Investment Banking plaporm to help our clients’ achieve their strategic goals. Providing our clients with a comprehensive range of banking solutions, through both our conventional and Islamic solutions, is integral to building long-term relationships with our clients and meeting their differentiated needs.”
Commenting on the landmark transaction, Mr Mohamed Nazri Omar, Chief Executive Officer of Danajamin said, “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 their projects. We also commend EXSIM’s commitment as a socially responsible developer with its emphasis on innovative green features, with six of its recent developments being certified under the Green Building Index. 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. In achieving our mandate, we are also delighted to partner UOB Malaysia and New Paradigm Capital Markets for this innovative transaction.”
EXSIM, established in 2008, specialises in developing high-end residential, commercial and industrial real estate projects within the Klang Valley. To date, EXSIM has officially launched 21 developments with a total gross development value of RM8 billion and an another RM18 billion in the pipeline
1 NewParadigm Capital Markets is an award winning independent corporate finance advisory firm licensed by 1 Securities Commission focused on providing financial advice on mergers & acquisitions, restructuring exercises, capital raisings and strategic advisory.
2 Scarletz Suites @ KL City Centre is EXSIM’s second commercial property development. It is located at Lorong Yap 2 Kwan Seng in Kuala Lumpur, comprising 604 units of office suites.
About EXSIM Group
Environmental awareness coupled with exemplary lifestyle living, is the important philosophy that the EXSIM Group holds dear to its heart. EXSIM Group has redefined standards in the local industrial and residential sector towards an approach of creating spaces that embraces modern architecture and nature’s grand design.
The inaugural development by EXSIM Group, Nouvelle Industrial Park Lot 10 @ Kota Damansara was named Industrial Category winner in the FIABCI Malaysia Property Awards 2015. In 2017, EXSIM Group’s endeavours have once again received deserving recognition in the form of one FIABCI’s prestigious awards which signifies EXSIM’s advancement in its field. The Managing Director of EXSIM Group, Mr. Lim Aik Hoe was awarded Property Man in FIABCI Malaysia Property Awards 2017.
Our motto, ‘New Age Ingenuity’ embraces both nature and technology in championing a reinvention of living spaces for the 21st century urbanite, focusing on crating lifestyle facilities in every project of ours.
For more information, please visit www.exsim.com.my
About UOB Malaysia
United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is a subsidiary of Singapore-based United Overseas Bank Limited (UOB) and has had a presence in Malaysia since 1951. UOB Malaysia offers an extensive range of commercial and personal financial services through its branches, subsidiaries and associate companies: commercial lending, investment banking, treasury services, trade services, cash management, home loans, credit cards, wealth management and bancassurance products.
UOB is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world’s top banks: Aa1 by Moody’s and AA- by both Standard & Poor’s and Fitch Ratings. In Malaysia, UOB Malaysia receives AAA/Stable/P1 financial institution rating from RAM Ratings.
Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues.
We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education.
For further information, please visit www.uob.com.my
Danajamin Nasional Berhad is Malaysia’s first and only Financial Guarantee Insurer. Established in May 2009, Danajamin’s objective is to ensure that financially viable corporates continue to be able to access the bond market for their long-term financing needs and at the same, be an enabler to further develop the domestic bond and sukuk market.
To date, Danajamin’s guarantee have assisted 42 issuances across various sectors; and brought about a market impact of approximately RM22.7 billion through its risk sharing collaboration with partner banks.
Danajamin is ‘AAA’ rated by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. It is regulated and supervised by Bank Negara Malaysia under the Financial Services Act 2013. Danajamin is equally owned by Minister of Finance Incorporated and Credit Guarantee Corporation Malaysia Berhad.
Danajamin’s total asset and total shareholder’s equity stands at RM2.75 billion and RM1.79 billion respectively (as at 31 December 2018).
For further information, please visit www.danajamin.com
Head of Corporate Communications
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Vice President, Strategic Communications
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Corporate Strategy & Communications
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