By Sharen Kaur - Published in NST Property, September 16, 2021
Tropicana Corp Bhd has issued RM270 million worth of perpetual sukuk, which was given an AIS rating and a stable outlook by the Malaysian Rating Corporation Bhd (MARC).
The sukuk is part of an RM2 billion perpetual Sukuk programme, which is based on the Shariah principle of Musharakah, Tropicana said in a stock exchange filing yesterday.
The sukuk will be mainly used to refinance Tropicana's existing borrowings and to finance the group's working capital requirement.
As at end-March 2021, borrowings stood at RM3.7 billion.
In the first quarter of 2021, Tropicana recorded Year-on-Year increases in revenue and operating profit to RM240.5 million and RM54 million, attributable to higher progress billings.
Tropicana recorded higher sales and revenue from its current developments across its townships, such as Tropicana Miyu condominiums in Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments in Tropicana Metropark, Subang Jaya.
It also achieved good take-up for Edelweiss SOFO and serviced residences, the fifth and final tower of its signature Tropicana Gardens development.
The group reportedly has an ongoing gross development value of around RM4 billion, with most of its projects located in the Klang Valley.
Tropicana's established market position in the domestic property industry, coupled with large unbilled sales of about RM1.1 billion that provides earnings visibility through 2023, remain key rating drivers.
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