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- In a statement, Tropicana said redemption under the sukuk programme, launched in 2020 to fund development plans, reflects efforts to manage its debt.
KUALA LUMPUR (Oct 8): Tropicana Corp Bhd (KL:TROP) has redeemed another tranche of its sukuk wakalah worth RM139 million under its RM1.5 billion programme, which matured on Wednesday.
This latest redemption lifts the group’s cumulative payments under the programme to RM1.12 billion. Prior to this, Tropicana redeemed RM100 million on Sept 3 and RM123.5 million on June 30.
In a statement, Tropicana said redemption under the sukuk programme, launched in 2020 to fund development plans, reflects efforts to manage its debt.
The move underscores its “prudent financial stewardship and dedication to meeting commitments to investors”, it said.
Tropicana last year shared with The Edge its target to trim borrowings to RM1.2 billion by end-2025, from the elevated levels seen between 2017 and 2021.
The group has accelerated efforts over the past two years to pare down debt and reduce gearing, largely through asset disposals, which also resulted in lower recurring income for the group.
It sold its Tropicana Gardens Mall to IOI Properties Group Bhd (KL:IOIPG) for RM680 million cash last year.
For the first half of FY2025, the group’s net profit plunged 92.6% to RM2.56 million from RM34.49 million, as revenue slipped 12.6% year-on-year to RM590.54 million following lower recurring income after its asset disposals.
Prior to its debt redemptions in September and this month, Tropicana’s total borrowings stood at RM2.26 billion at end-June, slightly lower than RM2.31 billion a year earlier. Its gross gearing ratio at the time stood at 0.42 times, down from 0.43 times at end-FY2024 when it booked finance costs of RM174.34 million for that financial year.
Tropicana still has "robust unbilled sales of RM2.1 billion" currently, its statement read. Ongoing and new signature developments are "valued at an estimated gross development value (GDV) of RM6.5 billion across Malaysia,” it added.
The group’s development pipeline spans Johor, the Klang Valley, Genting Highlands and Langkawi. Tropicana also has a sizeable landbank of 1,336.1 acres, carrying potential GDV of RM168.4 billion.
Shares of Tropicana closed up two sen or 1.64% at RM1.24 on Wednesday, valuing the group at RM3.12 billion.
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