SUNWAY REIT SUCCESSFULLY COMPLETES MAIDEN ISSUANCE OF RM500 MILLION RATED SUSTAINABILITY – LINKED PERPETUAL SECURITIES

Media Release: SUNWAY REIT SUCCESSFULLY COMPLETES MAIDEN ISSUANCE OF RM500 MILLION RATED SUSTAINABILITY – LINKED PERPETUAL SECURITIES

o First ever rated perpetual securities by a REIT in Malaysia, also the first ever Sustainability-Linked Perpetual Securities in Malaysia
o Widely distributed to a diverse investor base comprising asset management companies, insurance funds, financial institutions, corporates and private wealth channels

Sunway City Kuala Lumpur, 22 October 2024 – SUNREIT Perpetual Bond Berhad, a special purpose vehicle wholly owned by Sunway REIT, had successfully issued its maiden rated sustainability-linked perpetual securities of RM500 million on 22 October 2024.

The transaction marked the first ever rated perpetual securities issued by a REIT in Malaysia, and it was also the first ever sustainability-linked perpetual securities in Malaysia.

The perpetual securities comprise a perpetual non-callable 5 years tranche of RM150 million, priced at a coupon rate of 4.51% and a perpetual non-callable 7 years tranche of RM350 million, priced at a coupon rate of 4.68%. The sustainability-linked perpetual securities are rated A1(s) (which is 2 notches below Sunway REIT’s corporate credit rating of AA2) by RAM Rating Services Berhad, whilst the framework which the sustainability-linked perpetual securities is based upon was assigned a “gold” sustainable finance rating by RAM Sustainability Sdn Bhd.

The sustainability-linked perpetual securities have been structured to comply with the REIT Guidelines by the Securities Commission Malaysia, where perpetual securities are treated as equity, and not borrowings, for the purpose of computation of Asset Leverage Ratio for REIT.

“We are extremely pleased with the outcome of our debut rated sustainability-linked perpetual securities transaction. Due to the encouraging demand that we garnered during the book building process, the deal was upsized to RM500 million from the initial announced size of RM400 million,” said Clement Chen, the Chief Executive Officer of Sunway REIT Management Sdn. Bhd.

The issue proceeds of the sustainability-linked perpetual securities are expected to be utilised to part finance acquisition of assets, refinancing of bank borrowings and general working capital purposes.

CIMB Investment Bank Berhad and Maybank Investment Bank Berhad are the Joint Lead Managers and Joint Bookrunners for the sustainability-linked perpetual securities.

— end of media release —

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