CDC enters oil palm sector

CDC enters oil palm sector

JAKARTA (JP): The UK venture capital Commonwealth Development
Corporation (CDC) signed on Thursday a US$32 million investment
agreement with local palm oil processing and plantation company
PT Harapan Sawit Lestari.

The agreement raises CDC's stake in the company to 65 percent
and management control.

"This investment is important to CDC as it builds on our $160
million of investments in the oil palm sector in Southeast Asia
and the Pacific Islands," said CDC managing director Justin
Braithwaite.

Harapan operates in Ketapang regency, West Kalimantan, with a
25,400 ha plantation area. CDC previously held the equivalent of
a 20 percent stake in the company through convertible bond
investment in the firm.

Justin also said CDC was interested in acquiring plantation,
mining and consumer good operations currently under the control
of the Indonesian Bank Restructuring Agency.

He said CDC had allocated at least $100 million for IBRA
investment plans. (rei)