KUALA LUMPUR: Tropicana Corporation Bhd (TCB) has successfully issued the first tranche of RM200 million, 7-year Islamic Medium Terms Notes (IMTN) on a private placement basis led by HSBC Amanah Malaysia Bhd (HSBC Amanah).
The issuance which was made under TCB's newly established RM1.5 billion A+ rated senior secured Sukuk Wakalah programme marks the company's debut rated sukuk issuance in the ringgit market, which was successfully completed and launched in unprecedented times.
"We would like to congratulate TCB on this successful issuance. HSBC Malaysia and HSBC Amanah have been providing financial support to the company for more than a decade," HSBC Malaysia chief executive officer Stuart Milne said in a statement today.
This landmark issuance provides investors with an opportunity to tap into a rated and senior secured offering from a leading property development company in Malaysia, wherein most property issuances in ringgit debt capital markets to date have been based on an unrated and perpetual basis.
For this inaugural rated secured issuance, HSBC Amanah acted as the sole principal adviser, lead arranger and lead manager.
"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," TCB managing director, group finance Lim Lai Seng said.
"What is most commendable about this issuance was that it was completed during the Conditional Movement Control Order (CMCO) exhibiting the strong collaboration between TCB and HSBC, supported by HSBC's digital capabilities and commitment towards supporting clients," he said.
Pursuant to this mandate, HSBC Malaysia extended an interim financing to further support TCB's corporate requirement initiatives with a short-term bridging loan of RM200 million.
This 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.
"As a pioneer in the sukuk market, we continue to innovate and ensure we offer customers the best Shariah-compliant products and solutions," HSBC Amanah chief executive officer Oz Ahmed said.
"We look forward to working closely with Tropicana again on many other successful transactions in the future," he said.
