[RAM] RAM Ratings assigns final AA3/Stable rating to Exsim Capital's Tranche 7 IMTN

RAM Ratings has assigned a final rating of AA₃/Stable to the RM455 mil seventh issuance (Tranche 7 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 7 IMTN will be backed by future receivables under sale and purchase agreements for two serviced residence projects, The Kingswoodz in Bukit Jalil, Kuala Lumpur, and Noordinz Suites in George Town, Penang (collectively, the Projects). The Tranche 7 IMTN will be accompanied by an unrated Sukuk Murabahah ICP facility (Tranche 7 ICP), which will serve as a liquidity line to cover potential cost overruns, working capital gaps and any shortfalls in IMTN profit payments and senior expenses. The ICP facility will be underwritten by United Overseas Bank (Malaysia) Berhad (rated AAA/Stable/P1 by RAM).

Sales progress as of mid-June 2025 – 99.2% for Kingswoodz and 99.3% for Noordinz – was slightly higher than the 99% assumed in our preliminary assessment. However, actual collections and payments as of end-May 2025 led to an overall reduction in remaining net cash flows for the sukuk’s tenure, resulting in a smaller final issue size of RM455 mil compared to the preliminary RM475 mil. Given construction progress since the preliminary rating exercise, the required ICP facility is smaller at RM100 mil – down from RM110 mil – in view of lower working capital requirements and the smaller issue amount.

In assigning the final rating, we reviewed all relevant transaction documents and found them to be in line with our expectations when the preliminary ratings were assigned and published on 6 June 2025 (click here) (see final rating rationale for further details). We also considered the latest project progress reports, dated 4 June 2025 (Kingswoodz) and 7 June 2025 (Noordinz), independent project certifier (IPC) reports, management inputs, and relevant legal and tax opinions.

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) 2708 8238
nurisya@ram.com.my

Lim Chern Yit
(603) 2708 8302
chernyit@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my