Expected this year, PT Nusantara Plantation X (Persero) to issue bonds worth Rp 700 billion. Proceeds from the bond issue will be used to support the company’s expansion.
Preparation of the bond issue amid accelerated. “Using fiscal year 2012 financial statements, we expect bond issuance could take place the first half of this year,” said Finance Director PTPN X Dolly P. Pulungan in Surabaya, on Tuesday (04/09/2013).
The move has also been sanctioned mentioned the Ministry of SOEs. Later, PT Bahana Securities and PT AAA Securities to be implementing the underwriters in the issuance of these bonds.
“We get ratingA + Rating Agency of PT Indonesia (Pefindo.) This illustrates a stable outlook and the company’s performance continues to increase, so we’ll coupon bonds attractive to investors,” said Dolly P Pulungan.
The bond proceeds will be used for working capital replacement refinancing of banks with interest rates that are high enough to sustain the business three sugar mills (PG) in South Sulawesi, which Takalar PG, PG Bone, and PG Caming.
Three sugar mills, said Dolly P Pulungan, now managed by PTPN X corresponding duty of the Ministry of SOEs. With the proceeds of the bonds, the company could obtain cheaper funding costs than bank credit that has been used by the three PG.
“In the future we will be racing performance by improving the farming sector (on-farm) and processing (off-farm), especially with mechanized approach for optimal results,” added Dolly P Pulungan.
Three sugar factories in South Sulawesi, continued Dolly P Pulungan, has been working on a land area of 11,000 hectares. In the future, will be developed into 15,000 acres along the expansion.
PTPN X will apply best agricultural practices by providing superior varieties, cultivation methods are effective, and that grade plant processing systems by optimizing engine performance.
Dolly P Pulungan added, in addition to the three PG in South Sulawesi, the bond proceeds will also be devoted to boost the performance of eleven sugar factories owned by the company’s in East Java.
“We are targeting production of 538,000 tons of sugar this year, up from last year’s 494,000 tonnes. We are the market leader in national sugar industry since 2006 and until now has not been deterred,” he said.
Currently, PTPN X has 11 sugar mills in various cities in East Java, three tobacco plantations in Jember (East Java) and Klaten (Central Java), a subsidiary of the production of plastics, a subsidiary of the field of health care services, and investments in manufacturers edamame export oriented. In addition, the company was also tasked by the Ministry of SOEs to manage three PG in South Sulawesi who previously managed another state.
In addition to proceeds from the issuance of bonds, it also set up internal cash to sustain performance improvement. “We will improve the quality of the sugar with the purchase of five tools smoothing juice worth USD 25 billion, which is used to smooth juice with the ultimate goal of improving the efficiency of purification. If the quality of the sugar increases, automatic selling price of the auction will be increased. This is consequential to increase revenue,” he explained.
In 2012, PTPN X posted a pretax profit of Rp 506 billion, an increase of 140 percent compared to the achievements of 2011 amounting to Rp 210 billion.