Issuance of medium term notes (0678D)
May 10 2012 - 5:00AM
UK Regulatory
TIDMPALM
RNS Number : 0678D
Asian Plantations Limited
10 May 2012
10 May 2012
Asian Plantations Limited
("APL" or the "Company")
Issuance of medium term notes
Asian Plantations Limited (LSE: PALM), a palm oil plantation
company with operations in Malaysia, is pleased to confirm that,
further to the Company's announcement on 29 February 2012, it has
now completed the issuance of the initial tranche of RM100 million
(approximately US$32.6 million) (the "Initial Tranche") of APL's
medium term note programme ("MTN").
The Initial Tranche has been issued via Maybank Investment Bank
Berhad ("Maybank"), a leading Southeast Asian investment bank, to
Malaysian institutional fixed income investors and represents an
initial part of debt funding which the Company anticipates will
total approximately RM255 million (approximately US$83 million),
with various maturities ranging to up to ten years. The MTN
programme is unconditionally guaranteed by Maybank and therefore
has been accorded an AAA rating in the local Malaysian market.
The Initial Tranche is composed of a RM65 million (approximately
US$21.2 million) ten year maturity note (due 2022) and a RM35
million (approximately US$11.4 million) nine year maturity note
(due 2021). The all-in interest cost to the Company, including the
annual bank guarantee fee, is 6.00% and 6.10% for the nine and ten
year notes, respectively. This represents a 244 basis point ("bps")
premium for the nine year tranche over the equivalent nine year
Malaysian Government Securities ("MGS"), currently trading at 3.56%
and a 252 bps premium over the equivalent ten year MGS trading at
3.58%.
The proceeds from the Initial Tranche are currently intended to
be used towards funding the Company's plantation development,
construction of the crushing mill and for general working capital
purposes.
The remaining tranches of the MTN programme are expected to be
issued during the course of 2012 and 2013. The Company will provide
further updates if and when these tranches are issued.
Dennis Melka, APL's Joint Chief Executive Officer,
commented:
"We are delighted to announce the first issuance of the medium
term note programme. The MTN diversifies the Company's funding
sources, with the Initial Tranche of nine and ten year notes
successfully being priced at 244 bps and 252 bps over the
equivalent Malaysian government securities, respectively. This
tight credit spread reflects the current asset value of the Company
and its strong projected free cash flow in the years ahead."
For further information contact:
Asian Plantations Limited
Graeme Brown, Joint Chief Executive Tel: +65 6325 0970
Officer
Dennis Melka, Joint Chief Executive
Officer
Strand Hanson Limited
James Harris Tel: +44 (0) 20 7409 3494
Paul Cocker
Liam Buswell
Panmure Gordon (UK) Limited
Tom Nicholson Tel: +65 8614 7553
Callum Stewart Tel: +44 (0) 20 7459 3600
Macquarie Capital (Europe) Limited
Steve Baldwin Tel: +44 (0) 20 3037 2000
Dan Iacopetti
Bankside Consultants
Simon Rothschild Tel: +44 (0) 20 7367 8871
This information is provided by RNS
The company news service from the London Stock Exchange
END
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