(Standing, from left) Affin Islamic Bank CEO Datuk Paduka Syed Mashafuddin Syed Badarudin, TDM chairman YBM Tengku Seri Bijaya Raja and Maybank COO Tengku Ariff Azhar Tengku Mohamed witness the document signing ceremony.

KUALA LUMPUR (Oct 23): Plantation and healthcare group TDM Bhd (KL:TDM), in which Terengganu Inc Sdn Bhd owns a nearly 60% stake, is planning to raise up to RM1.5 billion via a sukuk wakalah programme to fund the company's borrowings, capital expenditure, investments, working capital and other general corporate purposes.

TDM said that it has lodged the required information and documents in relation to the sukuk wakalah, namely the Islamic medium-term notes (IMTN) programme with the Securities Commission Malaysia (SC).

The IMTN programme will have a tenure of 30 years from its first issuance date — within 90 days from the lodgement date of Sept 25, 2024, according to TDM’s filing to Bursa Malaysia on Wednesday.

The company’s total borrowing stood at RM429.38 million as at June 30, while its cash balance amounted to RM115.11 million.

"The sukuk wakalah programme is a significant step in TDM’s journey toward continuous growth. The funds raised will be used to enhance operational efficiency, support future investments, and meet TDM’s financial commitments in compliance with shariah principles,” TDM executive director Najman Kamruddin said in a statement.

The programme also aims to optimise TDM’s financial structure, including refinancing existing borrowings, as well as meet operational capital needs to ensure the smooth running of day-to-day operations and maintain efficiency throughout its businesses.

Affin Hwang Investment Bank and Maybank Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for the sukuk wakalah programme. Maybank Islamic Bhd is the shariah adviser for the sukuk wakalah programme.

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

It also operates five specialist hospitals under Kumpulan Medic Iman Sdn Bhd (KMI Healthcare) in Kuala Terengganu, Kuantan, Taman Desa, Kelana Jaya and Tawau.

TDM has been in the red for two consecutive quarters. The company narrowed its net loss to RM126,000 in the second quarter ended June 30, 2024 (2QFY2024) versus RM19.62 million in the same quarter a year ago, thanks to higher revenue from both of its plantation and healthcare divisions. Revenue rose 19.7% to RM154.67 million as compared to RM129.26 million.

Year-to-date, the counter has risen over 30%, partly on positive market sentiment and rising valuation among healthcare-related businesses.

Shares of TDM closed up one sen or 4.44% to 23.5 sen on Wednesday, valuing the group at RM396.08 million.