KUALA LUMPUR: Exsim Capital Resources Bhd, a wholly-owned subsidiary of Exsim Development Sdn Bhd (Exsim), has issued RM323 million Tranche 2 Sukuk Musharakah (Tranche 2 Sukuk) as part of its RM2.0 billion Islamic Medium Term Notes Program.
The Tranche 2 Sukuk is backed by future receivables under sales and purchase agreements from two of Exsim's residential development projects in Damansara Perdana, Petaling Jaya, namely D'Quince Residences and D'Vervain Residences.
Although the challenges posed by the pandemic, including its negative impact on investor sentiment and disruptions caused by the various movement control orders issued by the government, the Tranche 2 Sukuk was fully subscribed, the company in a statement said.
RAM Rating Services Bhd has assigned a rating of AA3/Stable to the Tranche 2 Sukuk and as part of its surveillance post-issuance.
RAM Ratings will further monitor the transaction via monthly construction progress reports, project account statements, trustee reports, and quarterly independent project certifier (IPC) report to track the actual time and cost to completion against the developer's targets.
The credit rating agency expects to report on the progress of the projects semi-annually, Exsim said.
The Tranche 2 Sukuk issuance is a follow-on issue following the successful issuance of Tranche 1 Sukuk in January 2019 for Exsim's D'Nuri Residences and Nidoz Residences development projects in Desa Petaling, Kuala Lumpur.
Notwithstanding the Covid-19 pandemic and the movement control order (MCO), both the D'Nuri Residences and Nidoz Residences were delivered to end purchasers in July 2020. In addition, the Trance 1 Sukuk was successfully redeemed in August 2020, which was ahead of its scheduled expected maturity date.
The sukuk structure is developed, arranged and advised by NewParadigm Capital Markets Sdn Bhd, a corporate finance advisory firm licensed by the Securities Commission Malaysia, whilst United Overseas Bank (Malaysia) Bhd acted as the lead arranger and lead manager.