Sime Darby Property raises RM800m from sukuk at record-low cost

• The sukuk was oversubscribed by 6.74 times with RM5.4 billion in orders from 51 institutional investors. It offers profit rates averaging 4.02% per year with tenors, or loan periods, of 7 to 15 years.

KUALA LUMPUR (April 29): Sime Darby Property Bhd has raised RM800 million in its third sukuk (Islamic bond) sale under a RM4.5 billion programme at a record-low cost.

The sukuk was oversubscribed by 6.74 times with RM5.4 billion in orders from 51 institutional investors. It offers profit rates averaging 4.02% per year with tenors, or loan periods, of 7 to 15 years.

According to the company, this is the lowest borrowing cost it has ever achieved for all tenors, even with global market uncertainty caused by recent U.S. tariff changes.

“The unwavering support we received, especially for the longer-dated tenors, affirms investors’ confidence in our strategic direction and ability to multiply value across cycles,” said Sime Darby Property group managing director and chief executive officer Datuk Seri Azmir Merican.

He said the strong response to the sukuk shows investors trust the company’s strategy to grow steady income from industrial, logistics, and data centre projects.

Sime Darby Property said the proceeds from the sukuk will be used for long-term growth, working capital, and other corporate needs.

The sukuk also supports Sime Darby Property's SHIFT25 strategy, helping to build its recurring income and asset portfolio as it transforms into a real estate investment company. It also aims to improve its capital structure and boost shareholder value through careful financial management.

MARC Ratings has maintained Sime Darby Property’s sukuk rating at AA+IS with a stable outlook for the fourth year in a row.

Maybank Investment Bank was the main adviser and arranger for the sukuk, working with CIMB Investment Bank and OCBC Al-Amin Bank as joint lead managers.

Shares of Sime Darby Property closed three sen or 2.34% lower at RM1.25 on Tuesday, giving it a market capitalisation of RM8.7 billion. Year-to-date, the stock is down more than 23%.

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