First Resources issues second ringgit-denominated sukuk of RM400m

KUALA LUMPUR, Dec 10 – First Resources Limited, a leading palm oil company listed on the Main Board of the Singapore Exchange, today successfully issued its second ringgit-denominated sukuk of RM400 million under its Sukuk Musharakah Programme of up to RM2 billion, established on July 9 this year.

OSK Investment Bank Bhd and RHB Investment Bank Bhd are the Joint Principal Advisers and Joint Lead Arrangers for the Sukuk Musharakah Programme and Joint Lead Managers for the distribution of the IMTNs in Malaysia.

In a joint statement today, they said the latest sukuk was issued by way of a private placement and will bear a periodic distribution rate of 4.30 per cent per annum, payable semi-annually in arrears, following strong demand from investors.

“The proceeds from this issuance will be utilised for First Resources’ general corporate purposes which are in compliance with syariah principles,” it said.

It added that the sukuk has a tenure of five years and will mature on December 8, 2017.

It said the Sukuk Musharakah Programme was accorded a long-term rating of AA2 by RAM Rating Services Bhd and is at present, amongst the highest rating accorded in Malaysia to a foreign company, whose operations are predominantly based in Indonesia.

First Resources is one of the fastest-growing palm oil producers in the Asia-Pacific and is principally involved in the upstream cultivation of oil palms, milling and downstream processing operations in Indonesia. – Bernama


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