Tropicana’s Proposed MYR 1.5 Billion Sukuk Wakalah Assigned a Preliminary A+ Rating with Stable Outlook

Malaysia’s Tropicana Corp (TC) has lodged a proposal with the Securities Commission to issue MYR 1.5 billion Medium Term Notes via a Sukuk Wakalah programme. TC aims to use the funds raised to repay borrowings to unencumber secured properties, for investments, capital expenditure, as well as to meet working capital requirements.

The Sukuk Wakalah has been assigned a preliminary rating of A+ by Malaysian Rating Corp (MARC), with a Stable Outlook. MARC noted that this rating comes on the back of TC’s stable and recurring income from its investment property portfolio, which supports the company’s established market position in the property development market, its moderate leverage position, as well as its...