Tropicana issues RM318m in sukuk wakalah to repay borrowings

KUALA LUMPUR (Oct 9): Tropicana Corp Bhd has issued RM318 million in Islamic bonds from its RM1.5 billion Sukuk Wakalah Programme to repay existing financing or borrowings.

The proceeds will also be used to defray fees, costs and expenses in relation to the sukuk programme and for capital expenditure and investments.

The issuance, which has been assigned a credit rating of A+IS with a stable outlook by Malaysian Rating Corp Bhd, has tenors of three and five years with a senior ranking and security cover of 1.5 times.

HSBC Amanah Malaysia Bhd is the sole principal adviser and lead arranger for the sukuk programme.

"CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, HSBC Amanah and Maybank Investment Bank Bhd are the joint lead managers for the sukuk issuance," said the property developer in a filing with the bourse.

This marks the third tranche of sukuk issued out of the RM1.5 billion programme, after a RM589 million issuance in June and a RM100 million issuance in September.

Tropicana's share price closed unchanged at 83 sen yesterday, giving a market capitalisation of RM1.22 billion.

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