Publicly listed palm oil producer PT BW Plantation Tbk (BWPT) has mandated three lead underwriters to arrange 5 year Rp500 billion-Rp700 billion bonds issuance.
BW Plantation Corporate Secretary Kelik Irwantono said the company has appointed PT BNI Securities, PT Danareksa Sekuritas, and PT Kresna Securities to underwrite the bonds.
“Three lead underwriters will help issuing bonds in November, using BW Plantation’s June financial statement,” he told Bisnis.
The proceed will be used to bankroll the company’s business expansion up to 2012 which will require US$80 million-US$90 million.
According to him, the capex is likely to finance the palm oil planting and the construction of two palm oil processing plants in Central Kalimantan and East Kalimantan.
The total land of BW Plantation is about 92,000 hectares of which 46,000 hectares are planted. "Until 2012, we are targeting about 63 000 hectares of the land will be planted which means we need to add 17,000 hectares more," he said.
Palm oil processing plant in Central Kalimantan, said Kelik, will have a capacity of 45 tonnes fresh fruit bunches (FFB) per hour, while the plant in East Kalimantan has a capacity of 60 FFB per hour.
"Until 2012, the production capacity of BW Plantation is possibly to reach 210 TBS whereas now it only produces 105 TBS an hour," he said.
Currently, the mature area of plantation reaches 15,000 hectares. In 2012, the mature area is estimated to increase up to 27,000 hectares.
Disclosure: No position at the stock mentioned above.
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