Singapore’s PDC Corp expects to invest about $50 million to set up corn and coffee plantations in North Sumatra. The investment will be disbursed over 18 months, beginning the second quarter of the current financial year.
The investment will be funded by bank borrowings, estimated by PDC International director Desmond Ng to be 70% of the total amount, and the rest through equity fund-raising, Business Times reported on Tuesday (16/1/07).
PDC International, a subsidiary of PDC, signed a cooperation agreement in November to develop 40,000 hectares of land with the government of Toba Samosir regency.
PDC also announced that it has signed a memorandum of understanding with Super Coffeemix Manufacturing to cultivate coffee plants on 20% of its plantation in Toba Samosir. Under the agreement, Super Coffeemix will buy all coffee beans produced to its specifications by PDC at a discount to the prevailing commodity price.