Tropicana Corporation Issues RM300 Mln Sukuk Wakalah

KUALA LUMPUR, Nov 14 (Bernama) -- Tropicana Corporation Bhd has issued sukuk wakalah amounting to RM300 million in nominal value under its Islamic medium-term notes (IMTN) programme. 

The company said in a statement today that the tranche 4 sukuk wakalah, launched under the 2024 IMTN programme, was upsized from RM200 million, following robust investor demand.

It was oversubscribed, with government-linked institutional investors taking a significant portion. 

"This issuance aligns with the group’s ongoing strategy to optimise financial management while advancing its strategic growth initiatives. 

"The sukuk proceeds will be channelled towards funding key projects across Tropicana’s strategic townships in Malaysia, supporting the group’s continued expansion in the coming year," the statement said.

The group said it fulfilled its RM139 million payment obligations in October 2025, in a tranche 4 payment under its RM1.5 billion IMTN programme introduced in 2020, bringing total cumulative payments under the programme to RM1.12 billion. 

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It said the company's balance sheet remains strong, evidenced by gross gearing declining to 0.42 times as of June 30, 2025 from 0.43 times as of Dec 31, 2024. Unbilled sales remain robust at RM2.1 billion. 

"The group continues to generate sustainable earnings while driving momentum with ongoing and new signature developments with an estimated gross development value of RM6.5 billion across Malaysia.

"The group remains focused on sustaining its growth trajectory through enhanced sales performance, strategic monetisation of landbanks and investment properties, and continued financial optimisation," it said.

MARC Ratings revised its outlook on Tropicana to positive from stable with an A rating, it added.

-- BERNAMA