ARA DAMANSARA, 22 OCTOBER 2020 – Sime Darby Property Berhad (“SDP”) has amended its RM4.5 Billion Sukuk Musharakah Programme to incorporate terms for the potential issuance of ASEAN Sustainable and Responsible Investment (SRI) Sukuk with a credit rating of AA+IS and a stable outlook accorded by Malaysian Rating Corporation Berhad (MARC).
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, its steady sales performance with an overall take-up rate for ongoing projects of 65%, and an unbilled sales of RM1.54 Billion as at June 2020 reflecting a healthy market position.
The RM4.5 billion Sukuk Musharakah Programme was novated from Sime Darby Berhad as part of the restructuring exercise, with effect from 29 September 2017, following which it became unrated. 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.
MARC had also assigned a “Gold” Sustainability Sukuk Assessment to the Company’s sustainability Sukuk Framework, which sets out the guidelines for any future issuance of ASEAN SRI Sukuk Musharakah under the RM4.5 billion Sukuk Musharakah Programme.
Echoing from the Gold assessment, projects financed by the sukuk proceeds will help enhance Sime Darby Property’s commitment towards Building Sustainable Communities to meet the needs of the people and environment today without compromising the needs of tomorrow.
Maybank IB is the Principal Adviser and Lead Arranger for the Sukuk Musharakah Programme.
Proceeds from Sukuk Musharakah Programme
The proceeds raised from the Sukuk Musharakah Programme shall be utilised to finance Sime Darby Property and its subsidiaries’ (“the Group”) future investments, capital expenditure and/or working capital requirements as well as to refinance the existing Group’s debt (whether in whole or in part).
In the event that the ASEAN SRI Sukuk Musharakah is issued, the proceeds raised shall be utilised in accordance with the criteria set out in Sime Darby Property’s Sustainability Sukuk Framework. The framework sets out the use of the sustainable sukuk proceeds, the process of evaluating eligible projects, its commitment in management of proceeds, proceeds allocation, and impact reporting.
Sime Darby Property’s sustainability strengths
Sime Darby Property has a firm sustainable profile attributed by its strong governance of sustainability functions and efficiency in measuring the progress of its sustainability journey, paving the way in implementing notable sustainable initiatives in its various townships. This include projects like urban farming that empowers the community, building multi-generational homes, as well as homes that are energy-efficient and solar-ready in townships blessed with various amenities and facilities that connect the people to nature and help them live a well-balance lifestyle.
Sime Darby Property had also collaborated with Tropical Rainforest Conservation & Research Centre (TRCRC) to set up the Elmina Rainforest Knowledge Centre (ERKC) in the City of Elmina which will be a centre of environmental education and conservation, research and development, promotion of eco-tourism and other green activities. The ERKC is connected to the 2,700-acre Subang Forest Reserve.
Sime Darby Property Group Managing Director Dato’ Azmir Merican said: “We are pleased to be making headway in setting up the platform for the issuance of ASEAN SRI Sukuk. This development exemplifies our commitment to the company’s Corporate Sustainability Model, which captures and delivers on the Three Ps – People, Planet and Prosperity. This would further motivate our actions towards contributing to a better society, optimising environmental performance and delivering sustainable development.”
Sime Darby Property is the only Malaysian property developer to be recognised in the Dow Jones Sustainability Indices for two years, for its sustainability efforts which has spurred the Company further in its sustainability journey and to set new benchmarks and be an example for the industry.
About Sime Darby Property Berhad
Sime Darby Property is a leading property developer with a strong success rate of developing sustainable communities for over 47 years. With 24 active townships/developments, Sime Darby Property has a wide reach that encompasses assets and operations across the globe. It marks its presence in the UK as part of a Malaysian consortium to develop the iconic Battersea Power Station Project in central London.
As a responsible corporate player, Sime Darby Property and its philanthropic arm Yayasan Sime Darby (YSD) actively roll out various initiatives to assist the underprivileged communities living within and nearby its townships nationwide. A multi-award winning property group with numerous international and local accolades, Sime Darby Property is the only Malaysian property developer to be selected as an index component of Dow Jones Sustainability Indices (DJSI) for the second consecutive year.
It is also the first Malaysian property developer to be awarded the International FIABCI Prix d’Excellence Awards twice for its Subang Jaya and UEP Subang Jaya townships. The company bagged its 10th consecutive Gold at the Putra Brand Awards 2019 and its 6th consecutive Top 10 Developers Awards at the BCI Asia 2015.
Sime Darby Property has also been recognised as among the top developers in Malaysia in the annual The Edge Top Property Developers Awards, a recognition which the company consistently receives since 2009.
For more information, log on to https://www.simedarbyproperty.com/
Acting Head, Corporate Communications
Sime Darby Property Berhad
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