iKHASAS Group entered into a medium-term purchase agreement with TDM Bhd on 08/07/2019 for the purchase of crude palm oil (CPO), for a contract value of RM189 million spanning a period of 43 months starting from August 2019.

The agreement was signed between their respective subsidiary companies, namely iKHASAS CPO Sdn Bhd and TDM Plantation Sdn Bhd.

Under this shariah-compliant contract, iKHASAS will make an upfront payment of RM189 million to TDM which will be secured by a bank guarantee of RM201 million from TDM. iKHASAS will purchase CPO from TDM’s two palm oil mills in Kemaman and Sungai Tong in Terengganu, with a predetermined discount rate from the commodity’s market price.