RAM Ratings assigns preliminary AA3/Stable rating to Exsim Capital's Tranche 8 IMTN

RAM Ratings has assigned a preliminary AA3/Stable rating to the proposed ASEAN Green SRI Sukuk of up to RM240 mil (Tranche 8 IMTN) under Exsim Capital Resources Berhad's (the Issuer) RM2 bil Sukuk Musharakah Programme. The Issuer is a wholly owned financing vehicle of Exsim Development Sdn Bhd (Exsim).

The Tranche 8 IMTN will be backed by future receivables from two ongoing property projects: Hanaz Suites @ KL City Centre (awarded GreenRE Gold Provisional Certification) and The Asteriaz @ Kebun Teh, Johor (awarded GreenRE Bronze Provisional Certification). Proceeds from the sukuk will fund the two projects' remaining construction costs and obligations under both the Tranche 8 IMTN as well as a new RM60 mil unrated Sukuk Murabahah ICP facility (Tranche 8 ICP). The Tranche 8 ICP - to be issued under a new RM1 bil ICP Programme to be established with identical terms and programme limit as the existing programme - will be fully underwritten by an AAA/Stable/P1-rated financial institution, offering liquidity support for cost overruns, working capital needs and shortfalls in IMTN profit payments or senior expenses. 

RAM's cash flow assessment incorporates a 99% take‑up rate - a condition precedent for issuance - alongside buyer-default and price-decline post‑default stresses commensurate with the rating. A higher default frequency was applied for Hanaz, reflecting its more investor-driven buyer profile (mainly for Airbnb units) compared to Asteriaz which is anticipated to be owner-occupied. Buyer default risk is moderated by the high proportion of end‑financing among buyers. RAM's stress tests also consider construction delays and cost overruns, although these risks are partly mitigated by fixed price contracts and Exsim's completion undertaking.
 
Assuming issuance in April 2026, the transaction has adequate buffers between the projects' legal completion timel