Issue of Debt

RNS Number : 4698W

Asian Plantations Limited

19 November 2010

 



19 November 2010

Asian Plantations Limited

("APL" or the "Company")

US$1,000,000 Convertible Bond

Asian Plantations Limited (LSE: PALM), a palm oil plantation company with operations in Malaysia, is pleased to announce that Asian Agri Capital ("AAC"), an existing  shareholder in the Company, has today agreed to purchase, via Asian Agriculture Fund III, a US$1,000,000 convertible unsecured bond (the "Convertible Bond").

The Company intends to use the net proceeds from the Convertible Bond for general working capital purposes, augmenting the Company's existing working capital position.

The Convertible Bond bears a cash interest coupon of 1.75 per cent. per annum, which is payable semi-annually until 18 November 2014 (the "Maturity Date").

The Convertible Bond may be converted, in whole only, into 313,383 new ordinary shares of no par value in the Company. This represents a conversion price of 201 pence per share, at any time until the Maturity Date at the bondholder's election. This conversion price represents a 21.8 per cent. premium to the closing price on 18 November 2010, being the last business day prior to this announcement. 

In the event of non-conversion, the Company shall redeem the Convertible Bond, in whole, on the Maturity Date, such that the amount paid by the Company on redemption results in the bondholder having achieved, in respect of the Convertible Bond, including coupon payments, an internal rate of return of 10 per cent. 

Dennis Melka, APL's Joint Chief Executive Officer, commenting on the issue of the Convertible Bond, said:

"We are delighted with the additional investment made by AAC and look forward to them remaining a long term shareholder of the Company."

For further information contact:

Asian Plantations Limited Dennis Melka, Joint Chief Executive Officer Graeme Brown, Joint Chief Executive Officer	Tel:  [phone]                        Tel:  [phone]
Strand Hanson Limited James Harris Paul Cocker Liam Buswell	Tel: [phone]
Panmure Gordon (UK) Limited Tom Nicholson Edward Farmer	Tel: [phone]
Bankside Consultants Simon Rothschild Louise Mason	Tel: [phone] Tel: [phone]

 

END

 

 

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