BW Plantation Secures Rp 520b in Funds From 3 State Banks
BY :ANTONIA TIMMERMAN
JANUARY 07, 2015
Jakarta. BW Plantation, a listed palm oil plantation company, has secured Rp 520 billion ($41 million) of funds from three state lenders to support this year’s expansion plans.
The loan — from Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia — has a floating interest rate that currently averages 11.5 percent, said Kelik Irwantoro, BW Plantation’s finance director and corporate secretary.
No details such as the length of payments on the loan were provided. The yield on the 10-year government note, for example, is 8.0569 percent, based on the latest data from the Indonesia Bond Pricing Agency.
“The loan facility is ready and can be taken out according to our needs,” Kelik said recently.
He said that the loan will be used to finance 40 percent of the company’s capital spending of Rp 1.3 trillion. The remaining 60 percent of the cap expenditure will be financed by the company’s internal cash.
BW Plantation plans to use between Rp 400 billion and Rp 500 billion to build four palm oil processing plants in Papua, East Kalimantan, Central Kalimantan and West Kalimantan, Kelik said.
“We hope to complete the plants’ construction in 12 to 18 months as we anticipate quite a significant growth in palm oil production,” he added.
The company will use the remaining Rp 800 billion to Rp 900 billion in capital spending for working capital, plant maintenance and adding 10,000 hectares of plantations.