Exsim Capital early redeems its Tranche 1 IMTN in full following completion of projects

Published on 12 Aug 2020.

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RAM Ratings has received confirmation that Exsim Capital Resources Berhad (Exsim Capital or the Issuer) – a special-purpose vehicle wholly owned by Exsim Development Sdn Bhd (Sponsor) – had redeemed its RM290 million Tranche 1 IMTN in full on 11 August 2020, well ahead of the respective expected and legal maturity dates of 30 July 2021 and 28 January 2022. Upon full redemption of the Tranche 1 IMTN, RAM has withdrawn its AA3 rating of the sukuk and ceases to have any rating obligation in respect of the facility. Obligations under the accompanying RM130 million unrated Tranche 1 ICP facility – structured to meet liquidity and cost overrun needs, and guaranteed by Danajamin Nasional Berhad (rated AAA/Stable) – have also been fully met and cancelled upon full redemption of the Tranche 1 IMTN. 

Issued in January 2019, Exsim Capital’s Tranche 1 IMTN was supported by future sale and purchase agreement (SPA) receipts (the receivables) to be collected from buyers for the Nidoz Residences and D’Nuri Residences developments in Desa Petaling, Kuala Lumpur. Notably, both projects were issued Certificates of Completion and Compliance by the architect on 25 June 2020 and accordingly started delivery of vacant possession to purchasers in July 2020. Based on monthly monitoring reports provided to us, we note that the developer of the projects and the Issuer had duly complied with the terms of the transaction.

Exsim Capital was incorporated to undertake a RM2 billion Sukuk Musharakah IMTN Programme and RM1 billion Sukuk Murabahah ICP Programme. Under these programmes, the Sponsor or any of its developer subsidiaries will, from time to time, sell to the Issuer their beneficial interest under the respective SPAs signed with buyers associated with specific property development projects. Future receipts relating to such agreements will be used to fund remaining construction costs of the respective projects, as well as to meet the Issuer’s fees, expenses and obligations in respect of each IMTN and ICP facility.


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Ratings on Exsim Capital Resources Berhad