KUALA LUMPUR: Tropicana Corporation Bhd has redeemed the third tranche of its Sukuk Wakalah Programme worth RM110 million, which was due on June 7, 2024.
The property developer said the move was part of its efforts to reduce gearing and optimise financial management.
The company had also redeemed its first tranche of RM465.5 million on June 30, 2023 and its second tranche of RM179 million on Oct 6, 2023 under the same programme.
"The redemption of sukuk reflects Tropicana’s prudent financial management and commitment to fulfilling its obligations to investors,” it said in a statement today,
Tropicana said it continues to deliver sustainable earnings backed by its RM2.4 billion unbilled sales, as well as improved performance from the group’s property development, property investment, recreation and resort operations. The company’s balance sheet continues to strengthen, with the gross gearing level reduced to 0.68 times as of March 31, 2024 from 0.74 times in financial year 2023 (FY2023).
"This degearing exercise has also decreased the company’s overall debt level from RM3.8 billion in FY2023 to RM3.5 billion,” it said.
To spur growth, Tropicana plans to roll out residential or commercial developments across Malaysia, with an estimated gross development value of RM4 billion.
"We expect our financial position to strengthen with the upcoming handover of six vacant possessions this year from Tropicana Aman, Tropicana Miyu, Tropicana Metropark, and Tropicana Uplands,” it added. - Bernama
