Cracks in perpetual bonds

IN what may be a first for the local perpetual bond scene, Tropicana Corporation Bhd is seeking to exchange papers that are due this week with new corporate bonds to be issued, according to sources.

This means that holders of Tropicana’s RM248mil perpetual bonds – which were issued in 2019 – who were hoping to get their cash back at the five-year call date, have to decide if they want to accept a new bond instead.