Sime Darby Property has secured RM800 million through its latest Islamic bond issuance, marking a milestone with historically low financing costs despite global economic volatility. The offering, part of a RM4.5 billion sukuk program, attracted overwhelming demand, oversubscribed nearly seven times with bids totaling RM5.4 billion from institutional investors.
The bonds, structured with maturities ranging from 7 to 15 years, carry an average profit rate of 4.02%—the company’s most competitive pricing to date. This strong investor appetite reflects confidence in Sime Darby Property’s strategic shift toward stable-income assets, including industrial parks, logistics hubs, and data centers.
Proceeds will support long-term expansion, working capital, and corporate initiatives while reinforcing the company’s SHIFT25 transformation plan. The strategy focuses on building a resilient real estate portfolio and transitioning into a real estate investment trust (REIT) model to enhance recurring revenue.
MARC Ratings reaffirmed the AA+IS credit rating with a stable outlook, underscoring the company’s financial stability. Maybank Investment Bank led the transaction as the principal adviser, with CIMB Investment Bank and OCBC Al-Amin Bank serving as joint lead managers.