SimeProp NEV in RM2.6bil DC sukuk programme - The Star

KUALA LUMPUR, 29 JULY 2026 —

KUALA LUMPUR: Sime Darby Property NEV (Holdings) Sdn Bhd, a subsidiary of Sime Darby Property's New Economy Venture platform, has launched a sukuk programme worth up to RM2.6 billion to finance the development of build-to-suit-to-lease data centres and industrial and logistics assets. This initiative marks a significant milestone in the group's strategic expansion into Malaysia's rapidly growing digital economy and logistics sector. The programme is expected to play a role in the company's plans to create high-quality, institutional-grade assets that yield recurring income.

Under the sukuk programme, SimeProp NEV will issue a green sukuk to part-finance the development of hyperscale data centres in Elmina Business Park, the company's flagship industrial township. The hyperscale data centre project is backed by a 20-year long-term lease with a globally renowned multinational technology company, providing a stable source of income and underscoring the asset's institutional investment appeal. The capital raised through the sukuk programme will also be used to part-finance a build-to-suit distribution warehouse in the City of Elmina, equipped with advanced automated storage and retrieval systems. The logistics facility is anchored by a 15-year lease with a local hypermarket operator and is slated for completion by the end of 2027. Details of the project's timeline and budget are available, with completion targeted for 2027.

The launch of the sukuk programme is expected to have a positive impact on the Malaysian market, particularly in the digital economy and logistics sectors. The programme is also expected to attract institutional investors, both local and foreign, who are looking for high-quality, sustainable investments. The involvement of prominent financial institutions, such as Maybank Investment Bank and OCBC Al-Amin Bank, as joint-lead managers for the sukuk programme, demonstrates the confidence of the financial community in SimeProp NEV's strategy and the resilience of its investment platform.

The transaction parties involved in the sukuk programme include Maybank Investment Bank as principal adviser, lead arranger, and facility agent. The joint-lead managers for the sukuk programme are Maybank IB and OCBC Al-Amin Bank, while Credit Guarantee & Investment Facility serves as the financial guarantor of the guaranteed tranche. Maybank IB and the Asian Development Bank are acting as joint-sustainability structuring advisers for the sukuk programme, with Maybank Islamic as the syariah adviser, OCBC Al-Amin Bank as the security agent, and MTrustee as the sukuk trustee. The collaboration and support from these institutions reflect confidence in SimeProp NEV's long-term strategy and the resilience of its investment platform. Group managing director and chief executive officer Datuk Seri Azmin Merican noted that the establishment of a green finance framework, which was independently reviewed by MARC Solutions and awarded a "gold" impact assessment, demonstrates strong alignment with green finance best practices.

The outlook for SimeProp NEV's sukuk programme is positive, with the company well-positioned to capitalize on the growing demand for digital infrastructure and logistics facilities in Malaysia. The programme is expected to provide a stable source of income and create new job opportunities, contributing to the country's economic growth. With the involvement of prominent financial institutions and the support of the Asian Development Bank, the sukuk programme is expected to attract institutional investors and provide a benchmark for future green finance initiatives in Malaysia. As the company continues to expand its presence in the digital economy and logistics sector, the sukuk programme is expected to play a role in financing its growth initiatives and creating long-term value for its stakeholders. Details not yet available on the exact timeline for the issuance of the sukuk, but the company is expected to provide updates in the coming months.

Related: Sime Darby