Nod for Bumitama Islamic note programme

OIL palm plantation firm Bumitama Agri has been given the green light by the Malaysian authorities to establish a ringgit-denominated Islamic medium-term note programme of up to RM2 billion (S$770 million).

The SGX-listed company said yesterday that it was granted approval by the Securities Commission of Malaysia on Jan 10. It said that it will use the net proceeds raised from the issuance of any notes under the programme for the company's capital expenditure, working capital, investments, refinancing of existing debt and general corporate purposes - all of which shall be Syariah-compliant.

Under the programme, Bumitama may issue Islamic medium-term notes from time to time in Malaysian ringgit in various amounts, with tenure of more than one year and up to 15 years.