TH Plantation plans RM1.5b sukuk issue

KUALA LUMPUR, Sept 13 — Palm oil planter TH Plantation Bhd, a 59.08 per cent subsidiary of national pilgrim fund Tabung Haji, plans to issue a RM1.5 billion Islamic bond with a tenure of 15 years.

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/th-plantation-plans-rm1.5b-sukuk-issue/
Published: September 13, 2012

Hong Leong Islamic Bank Bhd and RHB Investment Bank Bhd were appointed as the joint runners for the Sukuk Murabahah facility, TH said in announcement today. It said the bond would not be rated.

Funds raised from the exercise will go towards redeeming TH’s commodity term financing facilities, financing capital expenditure needs and other corporate expenses.

TH 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. TH is one of six plantation companies wholly-owned by Tabung Haji. — Reuters