Jakarta listed plantation company PT Jaya Agra Wattie (JA Wattie) is seeking for up to Rp1 trillion of loan to finance its 4 year investment plan.
Company finance director Bambang S Ibrahim stated that the company will allocate Rp500 billion worth of proceeds from its IPO to finance the investment, expecting a total of Rp1.5 trillion investment fund.
"We are considering three funding options, bank loans, bond issuance and a combination of both," said Bambang, adding that the bond might be scheduled for the end of 2012.
JA Wattie has previously stated to allocate Rp490 billion worth of capital expenditure to fund the construction of its rubber and palm oil plants, expected to start operation in the third quarter of this year and next year, respectively.
JA Wattie booked net profit of Rp152.44 billion in the first 9 months of 2011, 176 percent higher from the recorded Rp55.27 billion in the same period the year before. Its net sales jumped about 68 percent to Rp502.25 trillion in the same period from Rp298.37 billion in 2010.
Its market capitalization reached Rp1.53 trillion from the accumulation of its shares, priced at Rp405 per share. (eaz)
