Appointment of Adviser

RNS Number : 4971Z
Asian Plantations Limited
14 January 2011
 



 14 January 2011

 

Asian Plantations Limited

("APL" or the "Company")

 

Appointment of Sole Principal Adviser & Sole Lead Arranger

 

Asian Plantations Limited (LSE: PALM), a palm oil plantation company with operations in Malaysia, is pleased to announce that it has appointed CIMB Investment Bank Berhad ("CIMB"), a leading South-east Asian investment bank (www.cimb.com), to arrange a medium term note programme ("MTN") for the Company, totalling up to RM250,000,000 (approximately US$80,000,000), with various maturities ranging up to ten years.

 

The MTN is subject to various government and regulatory approvals and market demand, and the Company is targeting to complete the MTN issuance in the first half of 2011, although there can be no guarantee that the MTN will be successfully arranged.

 

If concluded, the Company intends to use the proceeds from the MTN to:

 

§ finance the construction of the planned 90 tonne per hour vertical sterilizer crushing mill (scalable to 120 tonnes per hour);

 

§ contribute towards the Company's ongoing working capital for completion of the existing estates under development;

 

§ refinance a portion of the Company's existing indebtedness, amounting to RM85,000,000 (approximately US$28,000,000); and

 

§ fund potential land acquisitions and cash reserves.

 

Dennis Melka, APL's Joint Chief Executive Officer, commenting on the MTN, said:

 

"If completed, the issuance of the MTN will increase the Company's financial flexibility and provide for a superior capital structure. The Malaysian capital markets are receptive to long term palm oil plantation financings, which is a significant advantage of operating in Malaysia, an investment grade country with a low interest rate environment, compared with other global palm oil production zones."

 

 

For further information contact:

 

Asian Plantations Limited

Dennis Melka, Joint Chief Executive Officer

Graeme Brown, Joint Chief Executive Officer

 

 

                       Tel:  +65 6325 0970

 

Strand Hanson Limited

James Harris

Paul Cocker

Liam Buswell

 

 

Tel: +44 (0) 20 7409 3494

Panmure Gordon (UK) Limited

Tom Nicholson

Edward Farmer

 

 

Tel: +44 (0) 20 7459 3600

Bankside Consultants

Simon Rothschild

Louise Mason

 

Tel: +44 (0) 20 7367 8871

Tel: +44 (0) 20 7367 8872

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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