[RAM] RAM Ratings assigns final AA3/Stable rating to Exsim Capital's Tranche 6 ASEAN Green SRI Sukuk

RAM Ratings has assigned a final rating of AA3/Stable to the RM310 mil sixth issuance (Tranche 6 IMTN) under Exsim Capital Resources Berhad’s (Exsim Capital or the Issuer) RM2 bil Sukuk Musharakah Programme (IMTN Programme). The Issuer is a special-purpose financing vehicle wholly owned by Exsim Development Sdn Bhd (Exsim).

The Tranche 6 IMTN will be backed by future receivables under sale and purchase agreements for serviced suites, Hugoz Suites and Kyliez Suites (the Projects). Located off Jalan Tun Razak and Jalan Ampang in Kuala Lumpur City Centre, the Projects are set to receive Gold GreenRE certification, qualifying them as eligible green assets under Exsim’s ASEAN Sustainability SRI Sukuk Framework.

Future receipts will fund the Projects’ remaining construction costs and the Issuer’s fees, expenses and obligations under the Tranche 6 IMTN and the accompanying Sukuk Murabahah ICP (Tranche 6 ICP). The RM76 mil unrated Tranche 6 ICP will serve as a liquidity line for cost overruns, working capital gaps and any shortfalls in IMTN profit payments and senior expenses. It will be underwritten by United Overseas Bank (Malaysia) Bhd (rated AAA/Stable/P1 by RAM Ratings).

Having reviewed the transaction documents for the IMTN and ICP programmes, we are satisfied that they align with the transaction structure represented during the preliminary rating exercise. Our cashflow projection incorporates sales progress as of end-October 2024 – when the take-up of Hugoz and Kyliez stood at a respective 99.1% and 99.7% – and construction progress as of 26 October 2024 at Hugoz and 4 November 2024 at Kyliez. We have also considered the latest progress report, independent project certifier (IPC) and management inputs, as well as relevant legal and tax opinions. These findings are consistent with our earlier assessment of the Tranche 6 IMTN, published on 29 October 2024 (click here). Please refer to the final rating rationale for details. 

Upon closing, we will maintain surveillance of the transaction through monthly construction progress reports, project account statements, trustee reports and quarterly IPC reports. Updates on the Projects’ progress will be provided semi-annually or as needed. 


Analytical contacts
L Nurisya Abdullah
(603) 3385 2492
nurisya@ram.com.my

Lim Chern Yit
(603) 3385 2528
chernyit@ram.com.my

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my