Aug 12, 2010

BWPT mandates Danareksa for bonds

CPO producer, PT BW Plantation Tbk (BWPT), is likely to mandate PT Dana Sekuritas as the underwriter emissions of bonds valued at Rp500 billion-Rp700 billion.
A source familiar with the matter said the results from the bonds' issuance is intended to support the business expansion until 2012.
"BW Plantation already conducted a serious talk with Danareksa. Possibly, Danareksa will become the underwriter of the bonds issuance scheduled in November this year," he told as reported by Bisnis.com.
When being confirmed, the President Director of Dana Sekuritas Marciano Herman said that the company is still in talks with BW Plantation's management related to this matter.
"We are still discussing the subject with BW Plantation. Related with the number of the bonds that will be issued, it is still discussed," he said.
BW Plantation Corporate Secretary Kelik Irwantono confirmed so far the plan is still in process. "We will decide about it next week," he said.
According to him, BW Plantation's capital expenditure until 2012 is estimated to reach US$80 million-US$90 million. 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.
Total lahan emiten itu kini mencapai 92.000 hektare dengan area tertanami mencapai 46.000 hektare. 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 tons 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.
This morning, the share price of BW Plantation coded with BWPT fell 2.41% to IDR810 per share. While its market capitalization was IDR3, 27 trillion.

Disclosure: No position at the stock mentioned above. 

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