“Tropicana boosts Senior Secured Sukuk issuance of RM200mil, driven by HSBC Amanah”

The first tranche of RM200 million, 7-year Islamic Medium Terms Notes (IMTN) was successfully issued by Tropicana Corporation Bhd (TCB) on a private placement basis led by HSBC Amanah Malaysia Bhd (HSBC Amanah).

The issuance rendered under the newly formed TCB RM1.5 billion A+ rating senior secured Sukuk Wakalah system marks the company’s debut approved sukuk issuance on the ringgit sector, which was completed successfully and released in unparalleled times.

This classified and senior secured offer was completed in the midst of unparalleled difficulties, ranging from the spiraling impact of the Covid-19 pandemic, the decline in oil prices, and the protracted economic volatility arising from widespread global lockdown and social isolation, further demonstrating to investors the importance of this debut issue.

Even the landmark issuance provides an opportunity for investors to take advantage of a rated and senior secured offer from a leading property development company in Malaysia, where most property issuances have been based on an unrated and perpetual basis in the ringgit debt capital markets.

HSBC Amanah has served as the primary principal advisor, lead arranger and project manager for this inaugural classified protected issuance.

HSBC Malaysia provided an temporary financing under this provision to better endorse TCB ‘s corporate obligation efforts with a short-term RM200 million bridging loan.

This facility bridged the time difference in setting up the Sukuk Wakalah project, as well as taking advantage of the ability to provide support awaiting the implementation of the said project.

HSBC Amanah Chief Executive Oz Ahmed said that they will proceed to innovate and ensure that they offer the best Shariah-compliant products and solutions to our customers. We look forward to collaborating closely with Tropicana again on several good potential transactions.

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