Malaysia’s Exsim Group Launches Two Sukuk Programs to Raise MYR 3 billion

Malaysian property developer, Exsim Group (EG) has issued an MYR 2 billion Islamic medium-term note (IMTN) and a MYR 1 billion Islamic commercial paper (ICP) to raise funds to refinance its existing borrowings and working capital requirements as well as to finance some land purchases.

United Overseas Bank, Malaysia, will act as the principal adviser and lead manager of both facilities and insurers. Danajamin Nasional will also provide guarantees for the standby working capital and liquidity requirements of the first tranche of the programmes.

The IMTN programme is the first Sukuk structure of its kind in Malaysia, which monetises future sales earnings of a commercial real estate development project. Each tranche of the facility is secured against a specific commercial...