TH Plantations to issue RM1.5b sukuk

KUALA LUMPUR: Oil palm planter TH Plantations Bhd, a 59.08 per cent subsidiary of Malaysia's pilgrims fund Tabung Haji, plans to issue a RM1.5 billion Islamic bond with a tenure of 15 years. 

Hong Leong Islamic Bank Bhd and RHB Investment Bank Bhd have been appointed as the joint runners for the sukuk Murabahah facility, TH Plantations said in announcement yesterday. 

It told the stock market that the bonds would not be rated. Funds raised from the exercise will go towards redeeming TH Plantation's commodity term financing facilities, financing capital expenditure needs and other corporate expenses.

TH Plantations saw its net profit drop 39 per cent in the first half of the year due to lower production and lower selling prices for crude palm oil (CPO), in line with the lower year-on-year results reported by most plantation companies.

The company recently issued new shares to raise RM536 million to finance an acquisition that would double its land bank. --Reuters

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