corporate

TDM to raise up to RM1.5bil from sukuk issuance

KUALA LUMPUR: TDM Bhd has signed a sukuk wakalah agreement with a total limit of RM1.5 billion with Affin Hwang Investment Bank Bhd and Maybank Investment Bank Bhd.

TDM executive director Najman Kamaruddin said the sukuk is a significant step in the company's journey toward continuous growth.

The funds raised will be used to enhance operational efficiency, support future investments, and meet TDM's financial commitments in compliance with Shariah principles.

He said the sukuk provides TDM with the flexibility to issue Islamic medium-term notes (IMTN) in accordance with the Wakalah Bi Al-Istithmar Shariah principle.  

The issuance can be rated or unrated, with options for secured or unsecured notes.  

The initiative enables TDM to optimise its financial structure, support future growth, and strengthen operating capital.

The sukuk will have a tenure of 30 years, ensuring the company's financial capacity to support future projects in the plantation and healthcare sectors. 

According to TDM, a significant portion of the sukuk proceeds will be allocated capital expenditures, investments, working capital and general corporate purposes.

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