Lonsum gets $213m loan

JAKARTA (JP): Publicly listed PT Pan London Sumatra Plantation (Pan Lonsum) has secured a $213 million syndicated loan from 29 banks from 10 countries.

The company said yesterday the loan agreement was signed in Phuket, Thailand on Sept. 12.

The loan will be used to finance the development of 67,000 hectares of palm oil estates in South Sumatra, Central Kalimantan and East Kalimantan.

The loan, arranged by HSBC Investment Bank Plc of Singapore, involved five local banks, including Bank Tabungan Negara and Bank Pembangunan Indonesia and 24 foreign banks, including Japan's The Sumitomo Bank Ltd Singapore Branch and Bank of Taiwan.

The company, which is listed on the Jakarta Stock Exchange, develops plantations, processing and exports palm oil, rubber, cocoa, tea and coffee.

The company's president Ibrahim Risjad said it planned to expand its plantations to 220,000 hectares, spread over North Sumatra, South Sumatra, West Java, East Java, Central Kalimantan, East Kalimantan and South Sulawesi. (08)