RAM Sustainability: Exsim Capital’s ASEAN Sustainability SRI Sukuk Framework meets green and sustainability guidelines

Published on 09 Nov 2023.

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RAM Sustainability’s external review (also known as a second opinion) concludes that Exsim Capital Resources Berhad's (Exsim Capital or the Issuer) ASEAN Sustainability SRI Sukuk Framework (the Framework) meets recognised green and sustainability guidelines. RAM Sustainability has also assigned a Tier-1 to Tier-3 Environmental Benefit (EB) rating to the Issuer’s green building eligible category, and a Tier-3 Social Benefit (SB) rating to its affordable housing eligible category.



The Issuer, a funding conduit, is wholly-owned by Exsim Development Sdn Bhd (Exsim). Exsim and its subsidiaries (the Group) is a non-listed property development group based in Malaysia with a strong commitment and proactive pursuit of green building certifications for its property development projects. As at 31 March 2023, 74% of Exsim’s ongoing and completed projects have obtained green building certifications. Exsim has a commitment to have all its future projects green building certified.

The Framework will be first utilised for Exsim Capital’s proposed ASEAN Green SRI Sukuk Musharakah (the Green Sukuk) of up to RM390 million. The proceeds will be used by Exsim Capital to acquire from the Group, the beneficial interests in two provisionally GreenRE Gold-certified green buildings – D'Clover and D'Terra Residences (the Development Projects), including the SPAs signed or to be signed with the end-buyers of the Development Projects and the monies captured under the accounts of the Development Projects. Future receipts from the SPAs will be used to fund remaining construction costs relating to the Development Projects.

We conclude that the Framework is aligned with the disclosure requirements of the SRI Sukuk Framework, ASEAN Green, Social, and Sustainability Bond Standards, and ICMA’s Green and Social Bond Principles and Sustainability Bond Guidelines. The Framework is also aligned with all core areas, and the respective 12 out of 19 recommendations under the Green and Social Bond Principles’ pre-issuance checklists. The Green Sukuk also carries a preliminary credit rating of AA3/Stable assigned by RAM Rating Services Berhad.

RAM Sustainability is a provider of sustainability services and Environment, Social and Governance analytics. Incorporated on 31 May 2000, it is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions. It also has the distinction of being the first Registered Observer of the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in the ASEAN region. On 12 August 2020, RAM became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme, after having been awarded the status by the Climate Bonds Standards Board. For further details, see https://www.ram.com.my/sustainability.  


Analytical contacts
Darrel Tiang

Cynthia Lim


This external review or second opinion 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 an investor, nor does it involve any audit by RAM Sustainability. 

Published by RAM Sustainability Sdn Bhd

© Copyright 2023 by RAM Sustainability Sdn Bhd

Publication Date Published Category
Exsim Capital Resources Berhad ASEAN Sustainability Sri Sukuk Framework 09-Nov-2023 Green Bond/Second Opinion Report View PDF