PETALING JAYA: Tropicana Corp Bhd has raised RM200 million with the issuance of its first tranche of its 7-year Islamic medium term notes via private placement basis led by HSBC Amanah Malaysia Bhd.
The issuance was made under the group’s newly established RM1.5 billion A+ rated senior Sukuk Wakalah programme marks its rated sukuk issuance debut in the ringgit denominated market.
HSBC Amanah which acted as the sole principal adviser, lead arranger and lead manager in the issuance pointed out the rated and senior secured offering provides an opportunity to investors, as most property issuance in the ringgit-denominated debt capital markets to date has been based on an unrated and perpetual basis.
“This rated and senior secured offering was completed in the midst of unprecedented challenges; ranging from the spiraling 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,” said HSBC Malaysia’s CEO Stuart Milne in a press release.
Tropicana’s managing director of group finance, Lim Lai Seng commented that that HSBC Amanah’s understanding of its business needs coupled with their knowledge on the real estate sector, enabled them to developed its debut rated sukuk programme and issuance thus enabling the group to further it expansion plans and meet its funding needs.
HSBC Amanah’s CEO, Oz Ahmed stated that the bank continues to innovate to offer 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 said.
With the issuance, HSBC Malaysia extended an interim financing to further support the group’s corporate requirement initiatives with a short-term bridging loan of RM200 million.
The bank elaborated that the 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 said programme.
