Lonsum to issue $100m in bonds for expansion<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Publicly listed plantation company PT PP London Sumatra
\nIndonesia (Lonsum) plans to issue bonds or sell some of its
\nshares via a rights issue to finance the expansion of its
\nplantations and the construction of new oil palm mills.<\/p>\n
The amount of the bonds or rights issue planned by the company
\nnext year might reach about US$100 million, according to Lonsum
\nsales and information system director Zafril Ansgar Hamzah.<\/p>\n
"We are still studying the best options to finance our
\nexpansion. It could be from bonds or rights issue, but for sure,
\nthe amount will reach approximately $100 million," said Zafril in
\na meeting with investors and media on Thursday.<\/p>\n
Zafril said the company's expansion plan for next year would
\ncover the purchase of some plantations in South Sumatra and East
\nKalimantan and the construction of new oil palm mills to increase
\ninstalled capacity of the current mills.<\/p>\n
However, Zafril refused to disclose the amount of plantations
\nthe company might purchase next year nor the amount of the
\nplanned capacity for its mills.<\/p>\n
At present, the company manages 48 plantation estates with a
\ntotal land of 135,864 hectares, while the installed capacity for
\nthe company's mills is about 1.5 million tons per year.<\/p>\n
Lonsum, which was once controlled by tycoon Ibrahim Risjad, is
\nexpecting sales revenues to reach Rp 1.93 trillion (US$214
\nmillion) next year, up from this year's estimation of Rp 1.65
\ntrillion.<\/p>\n
The company is also projecting net profit to increase to Rp
\n332 billion next year, from an estimated loss this year due to
\nthe company's debt restructuring worth $228 million in the first
\nsemester.<\/p>\n
As for crude palm oil (CPO) production, the company is
\nexpected to produce some 450,000 tons of CPO next year, up from
\nan estimated 345,080 tons this year, following the acquisition of
\nassets belonging to plantation company PT Pan Lonsum for Rp 520
\nbillion early this month.<\/p>",
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