Sukuk, loan mix for Felda’s Indonesian Eagle High stake buy

Major deal: A man walks past a signboard outside a Felda palm oil plantation in Hulu Selangor.Last week, Felda announced that its subsidiary FIC Properties Sdn Bhd is acquiring 37 in PT Eagle High Plantations for US505.4mil (RM2.26bil). — Reuters

KUALA LUMPUR : The Federal Land Development Authority (Felda) is set to raise funds for its 37% stake acquisition in PT Eagle High Plantations Tbk (EHP) via a mix of loans and sukuk issuance.

Sources familiar with the matter told StarBiz that 50% of the acquisition figure of RM2.26bil would be financed through a loan with a major European banking group. The remaining funds will be raised through a sukuk issuance.