KUALA LUMPUR (April 16): The Holstein Milk Co Sdn Bhd (THMC) is said to have proposed a RM1 billion Islamic bond issue under the Sukuk Wakalah programme, according to Malaysian Rating Corp Bhd (MARC), which has assigned a preliminary rating of AA-IS with a stable outlook to THMC's planned fundraising exercise.
THMC is a company under Malaysian sovereign wealth fund Khazanah Nasional Bhd's commercial fund, according to Khazanah's website.
MARC analysts wrote in a note today that THMC is an integrated dairy farming player with operations ranging from cattle breeding and milk processing in Malaysia and Australia to distribution of dairy products.
"The assigned rating is driven by THMC's growing market share in the dairy industry and its improving profitability, characterised by strong operating profit margins and a moderate leverage position.
"These strengths are counterbalanced by risks associated with a rapid business expansion phase and biological assets," they said.