Sime Darby Property Establishes RM2.6 Bln Green Sukuk Programme For Data Centres

KUALA LUMPUR, July 28 (Bernama) -- Sime Darby Property Bhd's New Economy Venture (NEV) platform, Sime Darby Property NEV (Holdings) Sdn Bhd (SDP NEV), has established a sukuk programme of up to RM2.6 billion to finance the development of build-to-suit-to-lease data centres as well as industrial and logistics assets.

In a joint statement issued by Sime Darby Property, the Asian Development Bank (ADB), Credit Guarantee and Investment Facility (CGIF), Maybank Investment Bank Bhd (Maybank IB) and OCBC Al-Amin Bank Bhd, the parties said SDP NEV will issue the green sukuk to part-finance the development of hyperscale data centres at Elmina Business Park, with Sime Darby Property set to design, construct and complete the development by 2027.

"The proceeds of the sukuk programme will also be utilised to part-finance the development of a build-to-suit distribution warehouse equipped with advanced automated storage and retrieval systems located in the City of Elmina," the statement said.

It said the green sukuk, the first of its kind in the world for a data centre, aligns with Malaysia's accelerating digital economy ambitions.

"Through this sukuk programme, Sime Darby Property continues to strengthen its position as a leading developer of large-scale build-to-suit digital infrastructure for multinational technology companies.

"The initiative reinforces the group's strategy of expanding its recurring income while catalysing innovative funding structures into one of Malaysia's fastest-growing economic sectors," it added.

The statement said Maybank IB is the principal adviser, lead arranger and facility agent for the sukuk programme, while Maybank IB and OCBC Al-Amin Bank Bhd serve as joint lead managers with CGIF the financial guarantor for the guaranteed tranche.

"The transaction is further underpinned by Maybank IB and the ADB acting as the joint sustainability structuring advisers for the sukuk programme, Maybank Islamic Bhd as the shariah adviser, OCBC as the security agent and MTrustee Bhd as the sukuk trustee," it added.

Meanwhile, in a separate joint statement, Lagenda Properties Bhd announced the subscription of the inaugural RM475 million sukuk wakalah under its RM1.5 billion sukuk programme, with AmBank Group committing RM400 million as the primary subscriber, marking the property developer's first entry into Malaysia's Islamic debt capital market.

The company said the sukuk programme, established through its wholly owned subsidiary Lagenda Capital Bhd and guaranteed by Lagenda Properties, is aimed at strengthening the group's capital structure and financial flexibility to support its long-term expansion in affordable township development.

Proceeds from the programme will be utilised for shariah-compliant purposes, including financing and refinancing investments, land acquisitions, capital expenditure, the development of affordable housing projects, working capital requirements, general corporate purposes, and the refinancing of existing borrowings.

Lagenda Properties managing director Datuk Jimmy Doh said the inaugural sukuk programme marked a significant milestone in strengthening the group's capital foundation as it continues to expand its affordable housing developments nationwide.

"It enhances our financial flexibility by broadening our access to Malaysia's Islamic capital market, enabling us to support our long-term growth through a more diversified and efficient funding platform while maintaining disciplined capital management," he said.

Meanwhile, AmBank Group managing director of Business Banking Christopher Yap said the bank was honoured to support Lagenda's inaugural sukuk programme as the primary subscriber, joint lead arranger, joint principal adviser, joint lead manager and joint shariah adviser.

"This milestone underscores confidence in Lagenda's strong fundamentals and long-term growth strategy. The programme provides a robust and flexible funding platform to support the group's continued expansion while reinforcing disciplined financial management," he said.

AmInvestment Bank Bhd acted as joint principal adviser, joint lead arranger, joint lead manager and facility agent for the Sukuk Programme.

-- BERNAMA