Guthrie plans Islamic bonds

Guthrie plans Islamic bonds

KUALA LUMPUR (AFX-ASIA): Kumpulan Guthrie Bhd said the company has entered into a memorandum of understanding with Bank Islam (L) Ltd on Nov 22, which reflects Guthrie's intention to raise funds of some $100 million under Islamic principles.

In a statement to the Kuala Lumpur Stock Exchange, in response to a query on the MoU, Guthrie said Bank Islam's intention is to assist Guthrie in its issue of global Islamic bonds.

"The intention to raise the global Islamic bond is also a commitment shown by Guthrie towards developing global Islamic banking and financing," Guthrie said.

It added that the MoU is "merely to record the intention of the parties" and is not intended to create any legally binding obligations on the part of either Guthrie or Bank Islam.

Guthrie said it is currently developing a substantial size of plantation land in South Sumatera, Indonesia and securing funds for the project is an on-going effort.