The National, Friday, April 29, 2011
LONDON listed New Britain Palm Oil Ltd (NBPOL) has been upgraded to a strong buy with a 2012 price target of 1500 pence issued by Heffernan Capital Management on Wednesday.
NBPOL also announced the signing of a new five-year US$240 million debt facility.
The facility will replace the previous 12-month US$200 million facility entered into during April last year to partially fund the acquisition of CTP (PNG) Ltd (now renamed Kula Palm Oil Ltd).
The facility is being provided by an Overseas Chinese Banking Corporation Ltd, Labuan branch, (OCBC), Maybank International Ltd, and Australia and New Zealand Banking Group (PNG) Ltd.
The facility comprises two equally sized amortising and non-amortising tranches.
The company and its subsidiaries operate in the oil palm, sugar and beef cattle industries in PNG with oil palm operations also in the Solomon Islands.
It is an industrial producer of palm oil and is vertically integrated, producing its own seed (which it also sells globally) and planting, cultivating and harvesting its own land, as well as processing and refining palm oil.
The company sells its palm oil to countries within the European Union and the United Kingdom, and its sugar and beef cattle is sold mainly within PNG.
Its subsidiaries include Guadalcanal Plains Palm Oil Ltd, Dami Australia Pty Ltd, New Britain Nominees Ltd, New Britain Plantation Services Pte Ltd, NBPOL, Ramu Agri-Industries Ltd and Dumpu Ltd.