RAM Ratings assigns final AA3/Stable rating to Exsim Capital’s Tranche 4 IMTN

Published on 12 Jun 2023.

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RAM Ratings has assigned a final rating of AA3/Stable to the RM300 mil fourth issuance (Tranche 4 IMTN) under Exsim Capital Resources Berhad’s (Exsim Capital or the Issuer) RM2 bil Sukuk Musharakah Programme (IMTN Programme). 

The IMTN Programme allows for the monetisation of progress billings by Exsim Development Sdn Bhd or its subsidiaries (Exsim Group or the Group), where the Group from time to time sells to the Issuer its beneficial interest under respective sale and purchase agreements executed with buyers for specific property development projects. Exsim Capital is a subsidiary and special-purpose vehicle of Exsim Group.

Concurrent with the Tranche 4 IMTN, Exsim Capital will have up to RM65 mil of unrated Sukuk Murabahah ICP (Tranche 4 ICP) available under a new RM1 bil Sukuk Murabahah ICP Programme (New ICP Programme). The New ICP Programme will replace the Existing ICP Programme which will expire on 6 March 2026. The Tranche 4 ICP will act as a liquidity line to cover transitory cash shortfalls in meeting profit payments and senior expenses in respect of the Tranche 4 IMTN and construction costs arising from timing mismatches between the development costs and progress payment receipts of The Fiddlewoodz residence (the Project). The Tranche 4 ICP will be underwritten by United Overseas Bank (Malaysia) Bhd (rated AAA/Stable/P1 on 30 March 2023) and will not be guaranteed.

Having reviewed the transaction documents for the IMTN and ICP programmes, we are satisfied that they reflect the transaction structure represented during the preliminary rating exercise. In our cash flow analysis of the Project, we have taken into account sales progress up to end-May 2023 – when the take-up rate was 99.1% (by units) – and construction progress as at 23 May 2023. We have also factored in the independent project certifier’s (IPC) view based on the latest progress report, as well as relevant legal and tax opinions. Overall, we find these to be in order and largely in line with our earlier assessment of the Tranche 4 IMTN, published on 7 April 2023 (click here). Please refer to our final rating rationale for further details. 

Upon closing, we will maintain surveillance of the transaction via monthly construction progress reports, project account statements, trustee reports and quarterly IPC reports. We expect to provide updates on the progress of the Project semi-annually or as and when required. 


Analytical contacts
Joel Thum
(603) 3385 2517

Lim Chern Yit
(603) 3385 2528


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad

Rating Rationale

Ratings on Exsim Capital Resources Berhad