The first structured transaction in Malaysia to monetise progress billings involving multiple development projects
Exsim Development Group (“Exsim”) has successfully established its first landmark RM3.0 billion financial programme comprising RM2.0 billion Sukuk Musharakah IMTN Programme (“Sukuk Musharakah or IMTN Programme”) and a RM1.0 billion Sukuk Murabahah ICP Programme (“Sukuk Murabahah or ICP Programme”) through a special-purpose financial vehicle, Exsim Capital Resources Berhad (“Exsim Capital” or the “Issuer”).
On 30th January 2019, the company issued a real estate unbilled sales-backed Sukuk facility, which is the first structured transaction in Malaysia to monetise progress billings involving multiple development projects, allowing Exsim to more efficiently manage its project development cash flows.
Exsim Capital floated the first tranche of its RM2.0 billion 10-year Sukuk Musharakah Programme which will monetize unbilled sales for executed property transactions. Under this programme, Exsim and its group of companies will sell their beneficial interest under the respective development projects. The future progress billings with regard to the relevant development projects will be used to fund the remaining construction costs as well as to meet the Issuer’s fees, expenses and obligations under each facility.