Sime Darby
Sime Darby Berhad wins approval to restructure US$800m Sukuk

Kuala Lumpur, 16 May 2017 – Sime Darby Berhad has received bondholders’ approval to restructure its US$800 million Sukuk, a major milestone in the group’s proposed debt reorganisation, which forms part of its plan to create three independent listed companies.

Holders of the Sukuk, of which US$400 million mature in 2018 and an equal amount mature in 2023, approved the company’s plan to buy back the papers or replace the obligor or borrower, to Sime Darby Plantation from Sime Darby Berhad currently.

“This is an important step for the group in our proposed reorganisation exercise to unlock value for shareholders.  We must ensure that each listed company has the optimal capital structure which will allow it to pursue growth with focus and agility,” said Sime Darby Berhad President and Group Chief Executive, Tan Sri Dato’ Seri Mohd Bakke Salleh.

The broader reorganisation of the group involves the proposed listing of Sime Darby Plantation and Sime Darby Property through share distributions. Sime Darby Berhad will remain listed, owning the automotive, industrial equipment and logistics businesses.

On April 18, 2017, Sime Darby Berhad launched a debt restructuring exercise to restructure its US dollar denominated Sukuk. Under the exercise, Sukukholders can cash in on their investment in the Sukuk or agree to change certain terms and conditions and replace Sime Darby Berhad with Sime Darby Plantation as the new borrower or obligor.

Sime Darby Berhad achieved a final tender and consent participation of 91% across both series of Sukuk. In addition, investors holding almost a quarter of the 2023 Sukuk chose to remain invested in Sime Darby Plantation.

Sime Darby Plantation achieved first-time corporate ratings of Baa1 and BBB+ by Moody’s Investor Service, Inc. and Fitch Ratings Ltd respectively, both on stable outlook. The ratings are similar to Sime Darby Berhad’s existing corporate ratings and reflect Sime Darby Plantation’s position as one of the world’s leading palm oil plantation players, its size and scale of business, track record, and strong shareholders’ support.

HSBC acted as the sole Structuring and Dealer Manager for the exercise.

About Sime Darby 
Sime Darby is a Malaysia-based diversified multinational involved in key growth sectors, namely, plantation, industrial equipment, motors, property and logistics. Founded in 1910, its business divisions seek to create positive benefits in the economy, environment and society where it has a presence.
With a workforce of over 120,000 employees in 25 countries and 4 territories, Sime Darby is committed to building a sustainable future for all its stakeholders. It is one of the largest companies on Bursa Malaysia with a market capitalisation of RM 63.45 billion (USD 14.69 billion) as at 15 May 2017.

For further information, please contact:

Shahriman Johari
External Communications 
Group Communications
Sime Darby Berhad
Tel: +(603) 2711 0923 
Mobile: +(6019) 333 8320