KUALA LUMPUR, Sept 13 (Reuters) - Palm oil planter TH Plantation Bhd, a 59.08 percent subsidiary of Malaysia's national pilgrim fund Tabung Haji, plans to issue a 1.5 billion ringgit ($488.20 million) Islamic bond with a tenure of 15 years.
Hong Leong Islamic Bank Bhd and RHB Investment Bank Bhd were appointed as the joint runners for the Sukuk Murabahah facility, TH said in announcement on Thursday. It said the bond would not be rated.
Funds raised from the exercise will go towards reedeming TH's commodity term financing facilities, financing capital expenditure needs and other corporate expenses.
TH saw its net profit drop 39 percent in the first half of the year due to lower production and lower selling prices for crude palm oil (CPO), in line with the lower year-on-year results reported by most plantation companies.
The company recently issued new shares to raise 536 million ringgit to finance an acquisition that would double its land bank. TH is one of six plantation companies wholly-owned by Tabung Haji. ($1 = 3.0725 Malaysian ringgits) (Reporting By Al-Zaquan Amer Hamzah; Editing by Ron Popeski)