Tropicana Corp issues RM200m Islamic medium term notes

HSBC Malaysia CEO Stuart Milne said HSBC Malaysia and HSBC Amanah have been providing financial support to Tropicana for more than a decade.

KUALA LUMPUR: Tropicana Corporation Bhd issued the first tranche of RM200mil, seven-year Islamic medium terms notes (IMTN) on a private placement basis.

HSBC Amanah Malaysia Bhd acted as the sole principal adviser, lead arranger and lead manager for the issuance under Tropicana Corporation’s newly established RM1.5bil A+ rated senior secured Sukuk Wakalah programme.

The bank said on Wednesday the placement marks Tropicana’s debut rated sukuk issuance in the ringgit market, which was successfully completed and launched in unprecedented times.

The landmark issuance provides investors with a unique and rare opportunity to tap into a rated and senior secured offering from a leading property development company in Malaysia.

Most property issuances in the ringgit debt capital markets to date have been based on an unrated and perpetual basis.

HSBC Malaysia CEO Stuart Milne said HSBC Malaysia and HSBC Amanah have been providing financial support to Tropicana for more than a decade.

“This rated and senior secured offering was completed in the midst of unprecedented challenges; ranging from the spiralling effects of the Covid-19 pandemic, the slump in oil prices, and the prolonged economic uncertainties arising from extended global lockdown and social distancing, further showcasing to investors the uniqueness of this debut issuance, ” he said.

Tropicana Corporation Corp managing director, group finance, Lim Lai Seng said this issuance was completed during the conditional movement control order (CMCO).

“HSBC Amanah’s understanding of our business needs coupled with their knowledge on the real estate sector, enabled them to develop our debut rated sukuk programme and issuance in the ringgit market and this has enabled us to further our expansion plans and meet our funding needs, ” Lim said.

HSBC Amanah CEO Oz Ahmed said as a pioneer in the sukuk market, the bank would continue to innovate and ensure it offers customers the best Shariah-compliant products and solutions.

“We continue to develop products and solutions that ensure businesses like Tropicana can continue running smoothly especially during these challenging times, ” he added.

Pursuant to this mandate, HSBC Malaysia extended an interim financing to further support

Tropicana Corporation’s corporate requirement initiatives with a short-term bridging loan of RM200mil. This facility bridged the timing gap in establishing the Sukuk Wakalah programme as well as to leverage the opportunity to provide funding pending the launch of the programme.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Business News

Malaysia Airlines offers subsidised tickets to boost domestic tourism
O&M business drives Serba Dinamik profits higher in Q3�
Top Glove confirms temporary stoppage of production plants in Klang due to Covid-19�
Soybeans touch 4-1/2 year high of $12 on supply concerns, high demand
Ringgit closes higher vs US$ at 4.0880
CPO futures close higher at RM3,518
Boustead Plantations stages turnaround in 3Q with RM17.9m net profit
US dollar falls to 2018 lows as vaccine optimism damps haven demand
HLT Global posts lower Q3 profit, as operating cost jumps�
PRG returns to black in 3Q with RM19mil net profit

Stories You'll Enjoy