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Sime Darby Property’s RM4.5b Sukuk Musharakah Programme gets AA+IS rating

KUALA LUMPUR, Oct 22 -- Sime Darby Property Bhd’s RM4.5 billion Sukuk Musharakah Programme has been accorded a credit rating of AA+IS and a stable outlook by Malaysian Rating Corp Bhd (MARC).

In a statement today, the company said the Sukuk Musharakah Programme was novated from Sime Darby Bhd as part of the restructuring exercise effective Sept 29, 2017, following which it became unrated.

“Notwithstanding the challenging operating environment, the rating reflects Sime Darby Property’s well-established position as a leading township developer, with its sizeable landbank in key population growth areas.

“The rating also reflects the company’s steady sales performance with an overall take-up rate for ongoing projects of 65 per cent, and an unbilled sales of RM1.54 billion as at June 2020, reflecting a healthy market position,” it said.

Sime Darby Property had also amended the Sukuk Musharakah Programme to incorporate terms for the potential issuance of the ASEAN Sustainable and Responsible Investment (SRI) Sukuk.

“The revisions to the principal terms and conditions of the Sukuk Musharakah Programme will be submitted to the Securities Commission Malaysia within 14 business days of the effective date of the revisions, prior to any issuance of Sukuk Musharakah under the Sukuk Musharakah Programme,” it said.

It said proceeds from the Sukuk Musharakah Programme shall be utilised to finance Sime Darby Property and its subsidiaries’ future investments, capital expenditure and/or working capital requirements, as well as to refinance the existing group’s debt.

Meanwhile, proceeds raised from the issuance of the ASEAN SRI Sukuk Musharakah shall be utilised in accordance with the criteria set out in Sime Darby Property’s Sustainability Sukuk Framework, it added.

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