UOB Malaysia today announced that it has successfully priced and placed out EXSIM’s issuance of four-year RM300 million Islamic Medium Term Notes (IMTN) at a fixed profit rate of 5.1 per cent per annum.
This issuance is the third tranche of EXSIM’s RM2 billion Sukuk Musharakah Programme (Sukuk Programme) that monetises the future earnings of the developer’s green residential development in the Klang Valley.
UOB Malaysia is the Lead Arranger and Lead Manager of the IMTN issuance, which received an AA3/Stable rating by RAM Rating Services Bhd. As the Malaysian property market has shown stronger signs of recovery in the first quarter of 20221, the IMTN issuance was well received by quality institutional investors, including insurance companies, asset management companies, banks, and private banks.
Ms Ng Wei Wei, Deputy Chief Executive Officer, UOB Malaysia, said, “We are proud to support EXSIM’s capital raising exercise once again. The Bank is committed to helping the Company drive its environmental, social, and governance (ESG) agenda of developing green and sustainable projects for homebuyers and to transitioning the country into a carbon-neutral economy.
Our support to EXSIM is part of the financing solutions we offer under the UOB Sustainable Finance Framework for Green Building Developers and Owners and the UOB Smart City Sustainable Finance Framework2 . These frameworks were developed to help more Asian companies advance their businesses responsibly, while reducing their carbon footprint.”
The Sukuk Programme, established in 2019, was structured by NewParadigm Capital Markets Sdn Bhd3 through a special-purpose vehicle, EXSIM Capital Resources Berhad.
Under the Programme, the IMTN issuance is also supported by RM75 million Islamic Commercial Papers, fully-underwritten by UOB Malaysia to meet the IMTN’s liquidity requirement. In addition, UOB Malaysia successfully priced and placed out EXSIM’s IMTN second tranche issuance under the Sukuk Programme4 in June 2021 to monetise the Company’s future earnings of two other sustainable residential developments in the Klang Valley
