Lonsum to get $197m loan

Lonsum to get $197m loan

HONG KONG (Reuter): PT PP London Sumatra Indonesia (Lonsum) and its parent PT Pan London Sumatra Plantation have mandated HSBC Investment Bank Asia, Singapore, and Union Bank of Switzerland, Hong Kong, to arrange US$197 million syndicated term loan facilities, UBS said.

The facilities will be used to refinance the borrowers' existing syndicated loan facilities signed in November 1994 and to fund Lonsum's expansion.

The facilities have been fully underwritten by the arrangers and will be launched into syndication in early March.

Privately held Lonsum is mainly involved in the cultivation, harvesting and processing of oil palm and rubber.