Sep 21, 2010

BW Plantation bonds obtain A rating

PT Pemeringkat Efek Indonesia (Pefindo) affirmed A rating for the bonds of PT BW Plantation Tbk series I/2010 worth Rp700 billion to be issued this year. 
For the company profile, Pefindo also assigned the similar rating for the Indonesia’s crude palm oil (CPO) producer.
Two analysts at Pefindo Doni Kuswantoro and Niken Indriarsih said that such rating reflects the strong operational management of the company, robust cash inflow protection, and impressive plantation profile.
“The rating’s prospectus is stable. Yet, the rating is still limited by BWPT’s aggressive financial policy as well as the exposure on the fluctuate price commodity and the bad weather,” he said through the press release today.
BW Plantation was established in 2000 and has owned and managed 96,175 hectare areas as per June 2010.
The area consists of 46.048 area of palm oil plantation and the remaining 50,127 areas were unexploited.
At the moment, the company owns crude palm oil processing plants that are located in Central Kalimantan. The CPO producer has added 9,700 hectare of new areas until the end of July.
The company expects to expand 10,500 hectare of new area this year. The company provides US$75 million of capital expenditure in which around US$25 million has been spent. 

Disclosure: No position at the stock mentioned above.  

Print This Article

No comments: