TDM Proposes RM1.5 Bln Sukuk Wakalah Programme Issuance

KUALA LUMPUR, Oct 23 (Bernama) -- TDM Bhd has proposed the issuance of a sukuk wakalah programme with a total programme limit of RM1.5 billion to enhance operational efficiency, support future investments, and meet its financial commitments in compliance with Shariah principles.

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

It said the programme also aims to optimise the group’s financial structure, including the refinancing of existing borrowings. 

“Additionally, the funds will be used to meet the operational capital needs to ensure smooth running of day-to-day operations and maintain efficiency throughout the group’s businesses,” TDM said in a statement today. 

Earlier, TDM signed the sukuk wakalah programme agreement with Affin Hwang Investment Bank Bhd and Maybank Investment Bank Bhd, marking a milestone in its financial strategy to achieve sustainable growth and long-term operational efficiency.

The company noted that the programme gives TDM the flexibility to issue Islamic medium-term notes based on the Shariah principle of “wakalah bi al-istithmar”, with options to issue the sukuk wakalah as either rated or unrated.

“The programme will have a tenure of 30 years, ensuring the group’s financial capacity to support future projects in the plantation and healthcare sectors,” it said.

TDM currently manages 13 oil palm estates covering an area of 28,531 hectares, two palm oil mills, two bio-organic fertiliser plants, and two biogas plants, all located in Terengganu.

Additionally, the company operates five specialist hospitals under Kumpulan Medic Iman Sdn Bhd in Kuala Terengganu, Kuantan, Taman Desa, Kelana Jaya, and Tawau. 

-- BERNAMA