Sime Darby Berhad Prices Debut US$400 Million 5-Year and US$400 Million 10-Year Sukuk Issuances

Sime Darby Berhad is pleased to announce that it has priced its inaugural US$400 million 5-year Sukuk issue at a fixed coupon rate of 2.053%, and its US$400 million 10-year Sukuk issue at a fixed coupon rate of 3.29%.

These offerings represent Sime Darby’s debut international USD issuance, and its first drawdown from its newly established US$1.5 billion Multi-Currency Sukuk Issuance Programme. Sime Darby is the first Malaysian issuer and the first Sukuk issuer globally to issue in the international USD debt capital markets in 2013.

This debut USD issuance from Sime Darby was highly successful, notwithstanding the heavy supply in the primary USD bond market, enabling the company to attract a very strong order book of more than USD8 billion, or a subscription rate of over 10 times via 376 orders from high quality investors. By geography, the 5-year issue attracted 184 orders across Asia (83%), and Middle East/Europe (17%), and the 10-year issue attracted 192 orders across Asia (57%) and Middle East/Europe (43%), allowing the company to price both maturities at the tight end of final price guidance. By investor type, the 5-year deal was allocated to institutional accounts including asset managers (65%), banks (19%), insurance companies (10%), public sector (4%), private banks (2%), and the 10-year deal was allocated to asset managers (50%), banks (19%), public sector (15%), insurance companies (14%), private banks (2%).

This landmark transaction represents the lowest ever coupon by any corporate globally in the USD Sukuk market, the lowest ever US dollar coupon in Sukuk format by an Asian issuer and the lowest ever coupon by a Malaysian borrower in the USD market, in both the 5 year and 10 year tenors.

“We are extremely pleased with our debut issuance, and the robust investor response we have received for this inaugural Sukuk issuance. The confidence the market has placed in us is clear testament to the strength of the Sime Darby Group, especially in the longer term,” said Sime Darby’s President & Group Chief Executive Dato’ Mohd Bakke Salleh. “We believe this is an important step we have taken to ensure sustainable growth in line with the Group’s strategy.”

Ahead of the Sukuk offering, Sime Darby obtained international ratings from S&P, Fitch and Moody's for the first time, on which Citi and HSBC acted as Joint Ratings Advisors to the company. The Sukuk is expected to be assigned issue ratings of A/A/A3 by S&P, Fitch and Moody’s, respectively. Sime Darby plans to use the net proceeds from the offering for capital expenditure, working capital requirements and general corporate purposes.

Citi, HSBC, Maybank Investment Bank and Standard Chartered Bank acted as Joint Bookrunners and Joint Lead Managers in respect of the Regulation S Registered Sukuk issuances, in addition to being Joint Arrangers on the newly established Sukuk Programme.

This announcement does not constitute an offer to buy, or a solicitation of an offer to sell, any Sukuk and no such offer, solicitation, purchase or sale shall be made in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful. The Sukuk have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state of the United States or other jurisdiction and may not be offered, sold, pledged or otherwise transferred within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities law. This announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Issuer and the joint lead managers' current view on future events. The value of the Sukuk, and the income derived from them may fall as well as rise. An investment in the Sukuk is subject to investment risks, including the possible loss of the principal amount invested. FSA/ICMA Stabilisation applies. The past performance of Sime Darby is not necessarily indicative of the future performance of Sime Darby