Riaupulp raises equity

JAKARTA (JP): Riau Andalas Pulp and Paper (Riaupulp), the 98- percent-held subsidiary of Asia Pacific Resource Holdings Limited (April), has increased its equity by US$200 million to $800 million.

Riaupulp's finance director and chief financial officer W. Michael Verge said in a statement yesterday that the fresh equity was part of $512 million raised from a recent rights issue by April.

The remaining $300 million of the rights issue's proceeds would be used to fund the construction of three paper facilities for April with a total capacity of over one million tons of uncoated freesheets, he added.

Riaupulp operates its mill near Riau's capital of Pakanbaru. It started commercial production in 1995 and produced 750,000 tons of bleached hardwood Kraft paper last year. (jsk)