Sime Darby Property launches world's first green sukuk for data centre financing

PETALING JAYA (July 28): Sime Darby Property Bhd has established the world's first Green Sukuk programme dedicated to financing hyperscale data centres, launching a RM2.6 billion Islamic debt programme that will fund digital infrastructure and industrial and logistics developments while advancing the group's strategy to build a larger base of recurring income.

Established through Sime Darby Property NEV (Holdings) Sdn Bhd, it said in a press statement on Tuesday (July 28) that the programme will support the group's New Economy Venture (NEV) platform, including its RM1.25 billion discretionary, close-ended, Shariah-compliant NEV Fund, which focuses on build-to-suit-to-lease data centres as well as industrial and logistics assets.

The initiative marks another milestone in Sime Darby Property's SHIFT32 transformation strategy as the developer expands beyond conventional township development into institutional-grade real estate backed by long-term leases and fund management capabilities.

Funding next-generation digital infrastructure

Part of the Sukuk proceeds will finance the development of hyperscale data centres at Elmina Business Park, the group's flagship industrial township in Selangor.

The facilities are backed by a 20-year lease with a globally renowned multinational technology company, providing long-term income visibility while reinforcing the park's emergence as one of Malaysia's key digital infrastructure hubs. Sime Darby Property is targeting completion of the facilities by 2027.

The proceeds will also part-finance a build-to-suit distribution warehouse equipped with advanced Automated Storage and Retrieval Systems at the City of Elmina. The facility is anchored by a 15-year lease with a local hypermarket operator and is likewise scheduled for completion by end-2027.

Together, the two projects reflect the NEV platform's focus on developing institutional-quality assets capable of generating stable recurring income across the digital infrastructure and modern logistics sectors.

Malaysia has emerged as one of Southeast Asia's fastest-growing destinations for hyperscale data centre investment, supported by its renewable energy transition agenda, competitive operating environment and expanding digital infrastructure.

Supporting a growing institutional investment platform

The sukuk programme complements the NEV Fund, which has already secured two strategic seed assets representing approximately 85% of its target fund size.

The group currently manages approximately RM4.8 billion in assets under management, supported by a long-term hyperscale data centre lease that commenced in April.

According to Sime Darby Property, the programme strengthens its ability to recycle capital into future digital infrastructure opportunities while expanding its recurring income platform.

Group managing director and CEO Datuk Seri Azmir Merican described the programme as a significant milestone in the group's strategic transformation.

"We are the first developer in Malaysia to bridge Sukuk financing with an institutional real estate private equity structure, supported by a 'Gold'-graded Green Finance Framework that reinforces our commitment to sustainable growth and disciplined capital management.

"The RM2.6 billion sukuk programme marks a defining milestone in our SHIFT32 transformation. As the general partner and manager of the NEV Fund, we are creating an institutional investment platform that enables us to develop high-quality build-to-suit assets required by global technology operators programmatically," he said.

World's first Green Sukuk for data centres

The transaction is underpinned by a Green Finance Framework independently assessed by MARC Solutions Sdn Bhd, which awarded it a Gold impact assessment — its highest rating.

The framework aligns with the Securities Commission Malaysia's Sustainable and Responsible Investment (SRI) Sukuk Framework 2014, the Asean Green Bond Standards 2018 and the International Capital Market Association's Green Bond Principles 2025.

Sime Darby Property said the issuance is the world's first Green Sukuk dedicated to financing an energy-efficient hyperscale data centre development, combining sustainable Islamic finance with digital infrastructure investment.

The sukuk programme features a dual-tranche structure comprising guaranteed and non-guaranteed issuances, providing funding flexibility while widening the pool of potential investors.

Maybank Investment Bank Bhd is principal adviser, lead arranger and facility agent, while Maybank Investment Bank and OCBC Al-Amin Bank Bhd are joint lead managers.

The Credit Guarantee and Investment Facility (CGIF) acts as financial guarantor for the guaranteed tranche, while Maybank Investment Bank and the Asian Development Bank (ADB) serve as joint sustainability structuring advisers.

Maybank Islamic Bhd is the Shariah adviser, OCBC Al-Amin Bank the security agent and MTrustee Bhd the Sukuk trustee.

Maybank president and group CEO Datuk Sri Khairussaleh Ramli said the transaction demonstrates how innovative Islamic financing can support Malaysia's digital economy ambitions.

"Maybank is proud to support the world's first Sukuk for data centre infrastructure financing. Together with Sime Darby Property, we are helping build a resilient, future-ready digital ecosystem that supports the nation's long-term growth ambitions," he said in the same statement.

OCBC Bank (Malaysia) Bhd managing director, senior banker and head of investment banking Tan Ai Chin described the programme as another milestone in sustainable digital infrastructure financing, while ADB director general for Southeast Asia Nianshan Zhang said the transaction supports Malaysia's digital transformation by combining scalable, energy-efficient data centres with green Islamic financing.

CGIF CEO Noriko Nasu said the participation of multilateral institutions alongside Malaysian financial institutions demonstrates growing confidence in sustainable infrastructure financing and capital market innovation.

Read also:
Sime Darby Property launches Shariah-compliant New Economy Venture fund targeting up to RM1.25b
From township builder to AI landlord: Sime Darby Property resets game plan, aims for data centre dominance

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