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Sime Darby Successfully Raised RM2.2 billion of Perpetual Sukuk Wakalah

24 March 2016

Kuala Lumpur, 24 March 2016 – Sime Darby Berhad has completed the first fund raising exercise under its Perpetual Subordinated Sukuk Programme, which is one of the group’s initiatives to manage its gearing level.

The RM2.2 billion Perpetual Non-Call 10-year Subordinated Sukuk is the largest perpetual Sukuk issuance globally by a non-bank, the largest Ringgit perpetual Sukuk issuance so far, and the first perpetual Sukuk globally based on the Shariah principle of Wakalah.

“The perpetual Sukuk is part of our deleveraging efforts and we are proud that this innovative financing instrument has established a landmark in Islamic finance,” said Tan Sri Dato’ Seri Mohd Bakke Salleh, President and Group Chief Executive, Sime Darby Berhad.

With a strong order book via a limited book-build, the Sukuk offering was over 1.8 times oversubscribed from its initial target, allowing Sime Darby to upsize and price the offering at the final yield of 5.65% per annum.

“We are encouraged by the strong support shown by investors and this also indicates the market’s continued confidence in Sime Darby,” Mohd Bakke said. 

The RM3 billion Perpetual Subordinated Sukuk Programme has been assigned a rating of AAIS by Malaysian Rating Corporation Berhad (MARC) and MARC has accorded 50% equity credit on the issuance which fits well with the Group’s deleveraging initiatives.  

Sime Darby plans to use the proceeds largely for refinancing of its debt obligations.

Maybank Investment Bank Berhad was the Sole Principal Adviser, Lead Arranger and Lead Manager of the Perpetual Subordinated Sukuk Programme.

About Sime Darby 
Sime Darby is a Malaysia-based diversified multinational involved in key growth sectors, namely, plantation, industrial equipment, motors, property and energy & utilities. Founded in 1910, its business divisions seek to create positive benefits in the economy, environment and society where it has a presence. 

With a workforce of 132,000 employees in 26 countries and 4 territories, Sime Darby is committed to building a sustainable future for all its stakeholders. It is one of the largest companies on Bursa Malaysia with a market capitalisation of RM48.01 billion (USD 11.96 billion) as at 23 March 2016.