UOB Malaysia successfully prices and places EXSIM Group’s RM365 million ASEAN Green SRI Sukuk Musharakah
Kuala Lumpur, Malaysia, 11 December 2023 – UOB Malaysia today announced the successful pricing and private placement of EXSIM Group’s RM365 million four-year ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk Musharakah. This is EXSIM’s inaugural green issuance under the newly-established ASEAN SRI Sukuk Framework, and UOB Malaysia is the Lead Arranger and Lead Manager for this transaction.
The ASEAN Green SRI Sukuk Musharakah, rated AA3 with a stable outlook by RAM Holdings Berhad, was also supported by unrated Islamic Commercial Papers amounting to RM85 million. The issuance received overwhelming response from investors, with total order exceeding 3.9 times its issuance size.
Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia, said, "We are very pleased to continue supporting EXSIM Group, a long-standing customer of UOB Malaysia, in their growth and sustainability journey. It is indeed an honour to be entrusted with the company’s inaugural sustainability issue under their newly established ASEAN SRI Sukuk Framework. The overwhelming response of the issuance clearly reflects investors’ growing demand for quality green investments and their confidence towards EXSIM’s green development projects.”
“As Malaysian consumers continue to shift favourably towards sustainability practices, the green real estate sector holds great potential and can contribute significantly to Malaysia’s net zero ambitions. UOB Malaysia is committed to leverage our expertise to support the development of this sector and our clients’ transition to sustainability to capture new opportunities.”
The proceeds from the ASEAN Green SRI Sukuk Musharakah issuance will be used by the Issuer to acquire EXSIM Group's latest eligible assets, namely the beneficial interests in two of their development projects - D’Clover and D’Terra Residences. These residential development projects located in Damansara Perdana, have received the provisional Gold certifications from GreenRE.
Mr Lim Aik Hoe, Managing Director of EXSIM Group, said, "We are pleased to once again receive the support from UOB Malaysia that resulted in the first ASEAN Green SRI Sukuk issuance for EXSIM to monetise these green projects. We are committed to environmental stewardship where responsible development and eco-conscious living seamlessly co-exist, thus creating long-lasting value for both our homebuyers and the planet."
UOB Malaysia has been the sole arranger and manager for previous tranches issued under EXSIM’s RM2 billion Sukuk Musharakah Programme established in 2019 and structured by NewParadigm Capital Markets Sdn Bhd1. Under the programme, the award-winning structured finance transactions monetised progress billings of EXSIM Group’s development projects in the Klang Valley.
1 NewParadigm Capital Markets is an independent corporate finance advisory firm licensed by Securities Commission Malaysia. It is focused on providing financial advice on mergers and acquisitions, restructuring exercises, capital raising and strategic advisory.