KUALA LUMPUR: TDM Bhd is undertaking a debt rationalisation exercise, involving the full settlement of the outstanding Indonesian Rupiah Notes held by the group’s Indonesian subsidiary, PT Rafi Kamajaya Abadi.
Under the exercise, the oil palm plantation and healthcare provider company will utilise a US$105 million or RM434.3 million credit facility in the form of a Foreign Currency Revolving Credit-I (FCRC-i) Commodity Murabahah, to fully settle its outstanding IDR notes used for its plantation operations in Kalimantan, Indonesia.
“Subsequently, TDM will redeem its investment in fixed income securities, of which the proceeds will be used to fully settle the principal portion of the US$105 million (US$1=RM4.14) FCRKUALA LUMPUR: TDM Bhd is undertaking a debt rationalisation exercise, involving the full settlement of the outstanding Indonesian Rupiah Notes held by the group’s Indonesian subsidiary, PT Rafi Kamajaya Abadi.
Under the exercise, the oil palm plantation and healthcare provider company will utilise a US$105 million or RM434.3 million credit facility in the form of a Foreign Currency Revolving Credit-I (FCRC-i) Commodity Murabahah, to fully settle its outstanding IDR notes used for its plantation operations in Kalimantan, Indonesia.
“Subsequently, TDM will redeem its investment in fixed income securities, of which the proceeds will be used to fully settle the principal portion of the US$105 million (US$1=RM4.14) FCRC-i.
“Upon completion of the exercise, the group’s total interest-bearing borrowings and gearing will reduce to RM476.6 million and 0.41 times from RM766.6 million and 0.68 times respectively as at June 30, 2018,” Chairman, Datuk Raja Idris Raja Kamarudin said in a statement.
He said the debt rationalisation exercise is a step in the right direction for the company.
Raja Idris also said the company would be able to meet the Securities Commission’s criteria of being a Shariah compliant counter on Bursa Malaysia.
In addition, TDM’s wholly-owned subsidiary, Kumpulan Ladang-Ladang Terengganu Sdn Bhd, has also accepted a RM48.9 million credit facility to part finance its replanting and plantation development expenditure at the Group’s plantations in Terengganu.
“This will support the group’s long term production growth by focusing on replanting of old plantations with new, high yield planting materials,” Idris said.