Refinances existing term loan, gets revolving creditCarson’s Group negotiates $ 109 mn. in Singapore to expand plantationsThe Sri Lanka incorporated plantation companies of the Carson’s Group with oil palm interests in Malaysia said in a Stock Exchange filing last week that they have negotiated a term loan facility of USD 109 million from Standard Chartered Bank (SCB), Singapore, ``for further expansion of current plantation projects.’’
Carson’s has in recent years been expanding its oil palm holdings in Indonesia and the majority holdings of the group’s oil palm companies were acquired earlier this year by a fully owned subsidiary, Goodhope Asia Holdings Ltd. (GAHL) incorporated in Singapore.
In addition to the USD 109 million term loan, refinancing an existing USD 81 million term loan facility outstanding and a revolving credit facility of USD 10 million has also been negotiated with SCB Singapore by GAHL set up to smoothen the group’s credit-raising ability among others.
Carson’s Chairman Tilak de Zoysa said in the company’s annual report for 2008/09 that ``the consolidation of plantation assets within the holding company would enable the business to command a more competitive position in this industry.’’
Carson’s shareholders have been told that it is important for the group to continue to expanding plantation extent when the industry is profitable. It would then be possible maximize profitability when palm oil prices peak in the next cycle.
The group also owns an undeveloped land bank available for expansion ``when resources for expansion gets priced higher.’’
``As rich nations rush to secure valuable developing country land banks for ensuring food security for their nations, investing in agriculture appears to be a healthy long term opportunity,’’ Carson’s said.
The group’s Malaysian interests, Shalimar Malay, Indo Malay, Selinsing and Good Hope all have investments in the two big plantation projects in Indonesia – PT Agro Indomas and PT Agro Bukit.
Carson’s has in recent years been expanding its oil palm holdings in Indonesia and the majority holdings of the group’s oil palm companies were acquired earlier this year by a fully owned subsidiary, Goodhope Asia Holdings Ltd. (GAHL) incorporated in Singapore.
In addition to the USD 109 million term loan, refinancing an existing USD 81 million term loan facility outstanding and a revolving credit facility of USD 10 million has also been negotiated with SCB Singapore by GAHL set up to smoothen the group’s credit-raising ability among others.
Carson’s Chairman Tilak de Zoysa said in the company’s annual report for 2008/09 that ``the consolidation of plantation assets within the holding company would enable the business to command a more competitive position in this industry.’’
Carson’s shareholders have been told that it is important for the group to continue to expanding plantation extent when the industry is profitable. It would then be possible maximize profitability when palm oil prices peak in the next cycle.
The group also owns an undeveloped land bank available for expansion ``when resources for expansion gets priced higher.’’
``As rich nations rush to secure valuable developing country land banks for ensuring food security for their nations, investing in agriculture appears to be a healthy long term opportunity,’’ Carson’s said.
The group’s Malaysian interests, Shalimar Malay, Indo Malay, Selinsing and Good Hope all have investments in the two big plantation projects in Indonesia – PT Agro Indomas and PT Agro Bukit.
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