TIDMPALM

RNS Number : 4971Z

Asian Plantations Limited

14 January 2011

14 January 2011

Asian Plantations Limited

("APL" or the "Company")

Appointment of Sole Principal Adviser & Sole Lead Arranger

Asian Plantations Limited (LSE: PALM), a palm oil plantation company with operations in Malaysia, is pleased to announce that it has appointed CIMB Investment Bank Berhad ("CIMB"), a leading South-east Asian investment bank (www.cimb.com), to arrange a medium term note programme ("MTN") for the Company, totalling up to RM250,000,000 (approximately US$80,000,000), with various maturities ranging up to ten years.

The MTN is subject to various government and regulatory approvals and market demand, and the Company is targeting to complete the MTN issuance in the first half of 2011, although there can be no guarantee that the MTN will be successfully arranged.

If concluded, the Company intends to use the proceeds from the MTN to:

-- finance the construction of the planned 90 tonne per hour vertical sterilizer crushing mill (scalable to 120 tonnes per hour);

-- contribute towards the Company's ongoing working capital for completion of the existing estates under development;

-- refinance a portion of the Company's existing indebtedness, amounting to RM85,000,000 (approximately US$28,000,000); and

-- fund potential land acquisitions and cash reserves.

Dennis Melka, APL's Joint Chief Executive Officer, commenting on the MTN said:

"If completed, the issuance of the MTN will increase the Company's financial flexibility and provide for a superior capital structure. The Malaysian capital markets are receptive to long term palm oil plantation financings, which is a significant advantage of operating in Malaysia, an investment grade country with a low interest rate environment, compared with other global palm oil production zones."

For further information contact:

 
 Asian Plantations Limited                     Tel: +65 6325 0970 
 Dennis Melka, Joint Chief Executive 
  Officer 
 Graeme Brown, Joint Chief Executive 
  Officer 
 Strand Hanson Limited                  Tel: +44 (0) 20 7409 3494 
  James Harris 
  Paul Cocker 
  Liam Buswell 
 Panmure Gordon (UK) Limited            Tel: +44 (0) 20 7459 3600 
 Tom Nicholson 
 Edward Farmer 
 Bankside Consultants                   Tel: +44 (0) 20 7367 8871 
  Simon Rothschild                      Tel: +44 (0) 20 7367 8872 
  Louise Mason

This information is provided by RNS

The company news service from the London Stock Exchange

END

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