Tropicana raises debut RM 200 million rated senior secured sukuk issuance

Tropicana Corporation Bhd has successfully issued the first tranche of RM 200 million, 7-year Islamic Medium Terms Notes (IMTN) on a private placement basis solely led by HSBC Amanah Berhad (HSBC Amanah).

The issuance which was made under Tropicana’s newly established RM 1.5 billion A+ rated senior secured Sukuk Wakalah programme marks Tropicana’s debut rated sukuk issuance in the MYR market.

According to HSBC Amanah, the 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 the country.

“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 Stuart Milne, chief executive officer, HSBC Malaysia.

“What is most commendable about this issuance was that it was completed during the Conditional Movement Control Order (CMCO) exhibiting the strong collaboration between Tropicana and HSBC, supported by HSBC’s digital capabilities and commitment towards supporting clients,” said Lim Lai Seng, Managing Director, Group Finance, Tropicana Corporation Berhad.

“As a pioneer in the sukuk market, we continue to innovate and ensure we 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,” added Oz Ahmed, chief executive officer, HSBC Amanah.

Pursuant to this, HSBC Malaysia extended an interim financing to further support the Group’s corporate requirement initiatives with a short-term bridging loan of RM 200 million.

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