Malaysian palm oil plantation business Multi Vest Resources last week completed its debut M$160 million ($42.4 million) sale and leaseback deal. Deutsche Bank arranged the 10-year transaction, which sees Benta Plantations - a Multi Vest subsidiary - transfer ownership of plantation assets into the ABS Plantation Assets SPV. Benta will lease back the assets with a buyback option at the end of the deal.
Following the recent trend in Malaysia, Multi Vest has chosen to go down the Islamic securitization path, using the deferred payment principal of Al Bai Bithaman Ajil. The company will use proceeds from the deal to part finance the acquisition of plantation land in Indonesia.