SIME Darby Bhd has novated its rights and obligations under two Islamic debt programmes to Sime Darby Property Bhd effective Sept 29, 2017, as part of its proposed internal restructuring specifically on debt restructuring.

The programmes consist of an Islamic medium-term note (MTN) programme of RM4.5 billion and an Islamic commercial paper/Islamic MTN programme of RM500 million, with a combined master limit of RM4.5 billion in nominal value.

Sime Darby told Bursa Malaysia yesterday that following the novation exercise, the rating status of the Islamic programmes has been changed to ‘Unrated’.

“The proceeds from any issuances to be made from the Islamic programmes shall be utilised to finance Sime Darby Property’s working capital requirements and general corporate purposes, and/or to finance future investments and/or capital expenditure and/or, if required to refinance debt obligations (whether in whole or in part) of the Sime Darby Property group,” the filing read.

The novation exercise is in line with the group’s proposed internal restructuring ahead of its pure play strategy, under which it will list its property and plantation segments as separate entities on the local
bourse.

It has said it intends to complete the demerger by year-end.

While the registered prospectuses have yet to be released, Sime Darby Plantation Bhd and Sime Darby Property have already issued their prospectuses for public exposure, with Oct 10 as the last date of exposure.

SOURCE: https://themalaysianreserve.com