07/06/2013 (The Sun Daily) - First Resources Ltd, one of the leading palm oil companies listed on the mainboard of the Singapore Exchange, has issued its third ringgit-denominated sukuk of RM600 million under its sukuk musharakah programme of up to RM2 billion, which was established on July 9, 2012.

First Resources is principally involved in the upstream cultivation of oil palms, milling and downstream processing operations in Indonesia. To date, First Resources manages over 158,000 hectares of oil palm plantations, operates 12 palm oil mills, a refinery, a fractionation plant and a biodiesel plant.

The proceeds from this issuance will be utilised for First Resources' general corporate purposes which are in compliance with Shariah principles. The latest sukuk was issued by way of a private placement and will bear a periodic distribution rate of 4.35% per annum, payable semi-annually in arrears, following strong demand from investors.

The sukuk has a tenor of seven years and will mature on June 5, 2020. The sukuk musharakah programme has been accorded a long-term rating of AA2 by RAM Rating Services Bhd, one of the highest ratings accorded in Malaysia to a foreign company whose operations are predominantly based in Indonesia. RHB Investment Bank Bhd acted as the principal adviser/lead arranger for the programme and the lead manager for the distribution of the islamic medium term notes (IMTNs) in Malaysia.