Annual Reporting Updates
(updated as at 1 December 2023)
The Agroto ASEAN Sustainability SRI Sukuk Programme of up to RM300.0 million is established to refinance and finance capital expenditures and working capital in relation to the Eligible Sustainable SRI Project. The proceeds from the Agroto ASEAN Sustainability SRI Sukuk issued under the Agroto ASEAN Sustainability Sri Sukuk Programme will be mainly used to refinance and finance capital expenditures and working capital in relation to the Eligible Sustainable SRI Project.
The original amount earmarked for the Eligible Sustainable SRI Project under the first tranche of the Agroto ASEAN Sustainability SRI Sukuk Programme was RM200.0 million. The amount disbursed under the first tranche of the Agroto ASEAN Sustinability SRI Sukuk Programme was RM200.0 million. All amounts under this first tranche were fully disbursed and the utilisation of proceeds was as follows:
No Description Amount
(RM'Million)1 Refinance existing financing facilities 173.2 2 To prefund the minimum required balances for the relevant designated accounts 17.5 3 To finance fees and expenses 2.8 4 To fund the Trustees' Reimbursement Account for Sukukholders' Actions 0.1 5 To finance working capital 6.4 Total 200.0 Brief description of the Eligible Sustainable SRI Project
Agroto Business (M) Sdn Bhd (“Agroto” or the “Issuer”) was incorporated for the primary purpose of initiating and implementing the nation’s leading integrated modern & sustainable farming operations since 2012 in the highlands of Kinta District, Perak (“Eligible Sustainable SRI Project”). This project is in line with the Perak state government’s strategic aim to make the state one of the leading states in the country’s agriculture sector, to promote sustainable agricultural highland use and sustainable farmed produce, and to enhance the food security by reducing Malaysia’s reliance on the import of quality vegetables.
Agroto focuses on sustainable agriculture, a type of agriculture that focuses on producing long-term crops and is expected to lower the environmental impact of farming activities. It engages modern farming technologies that can produce more nutritious and safe produce for consumers. By practising sustainable agriculture, Agroto aims to find a good balance between the need for food production and the preservation of the ecological system within the environment. In addition to producing food that is safe and nutritious for consumption, Agroto seeks to achieve this by applying several methods that are associated with sustainable agriculture: increasing the efficiency of land, conserving water, reducing the use of fertilisers and pesticides and promoting diversity in crops grown within the ecosystem.
Agroto produces highland vegetables for domestic consumption and for export purposes. Its farming model of crop production is supported by the implementation of modern farming techniques and compliance with credible certification standards into which sustainable practices have been codified. Agroto plans to increase crop production by expanding its modern farming production capacity in phases. Agroto’s current farming methods enables the use of less water, fertilisers, pesticides and land to put into producing the same amount of food as compared to the conventional farming methods. Apart from contributing to decreasing greenhouse gas emissions, Agroto’s farming methods gives it the ability to produce consistent crop yields and premium quality fresh farm produce throughout the year.
In line with Agroto’s mission to provide quality food produced sustainably and in turn contribute to the nation’s food security goals, Agroto has continued to deliver safe and fresh produce every year to Malaysia and surrounding region:
Description / Year 2021 2022 Nov-23 Acres planted 104 109 109 Food distributed to the region (KG) 9,116.438 10,114.896 9 945,663