NEW Britain Palm Oil Ltd (NBPOL), one of the largest fully integrated industrial producers of sustainable palm oil, last Friday announced the signing of a new five-year US$240 million debt facility, The National reports. The facility will replace the previous 12 month US$200 million facility entered into in April last year to partially fund the acquisition of CTP (PNG) Ltd (now renamed Kula Palm Oil Ltd).
In a statement through the Port Moresby Stock Exchange, the company said the facility was being provided by Overseas-Chinese Banking Corp Ltd, Labuan Branch of Malaysia, Maybank International Ltd, and ANZ (PNG) Ltd.
The facility comprised two equally-sized amortising and non-amortising tranches, and represented terms which the directors believed were very competitive.
The directors were particularly pleased with the level of competition demonstrated by interested lenders during the financing process.
Furthermore, the directors noted the continuing relatively low level of leverage that this facility represented for a company of NBPOL’s size and cash generative ability.
NBPOL chief executive Nick Thompson said: “The high level of competition, the very favourable terms and the extension of NBPOL’s facilities achieved during this refinancing demonstrated the increased strength and standing of the company in the eyes of the lending community.
“As part of the process, it also became clear that risk-appetite for lending to PNG had increased substantially.
“The company now had a very stable and conservative capital structure,” he added.
NBPOL is a large-scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in PNG.
It now has more than 75,000ha of planted oil palm plantations, a further 5,000ha under preparation for oil palm among others.
Sadly NBPOL West New Britain has seriously failed in its duty of care and OHS obligations. NBPOL now has three deaths (unreported) in the last 4 months of 2011 at the West New Britain operations, one involving a child laborer (11 years old) who was riding on a plantation tractor mudguard and subsequently fell under the wheels and was crushed to death, the second an electrocution due to faulty wiring at Kumbango Mill and the most recent, two weeks ago when a man working at Numondo mill was dragged along a conveyor and crushed when the conveyor he was working on was started. This follows on from the 5 unreported deaths that occurred in 2010. Whilst the banks extend credit facilities where is their due diligence. NBPOL places profit ahead of the safety of their employees as the they Greenwash the broader community. Reference to Dr Simon Lord, NBPOL Group Director of Sustainability, slord@nbpol.com.sg and Dr Petra Meekers, NBPOL Group Manager of Sustainability, petra.meekers@nbpol.com.pg or pmeekers@gsa-sustainability.com Dr Simon Lords contracting company Global Sustainability Associates slord@gsa-sustainability.com
ReplyDeleteYet more social issues troubling NBPOL. Seems their Social Credentials are lacking.
ReplyDeletePalm oil workers revolt
Wednesday, 6 July 2011 PNG National Newspaper
MORE than 1000 workers have reportedly gone on strike and destroyed property at an oil palm project owned by New Britain Palm Oil subsidiary Ramu Agri Industries in Gusap Downs in Madang Province.
Image courtesy of NBPO.
The Ramu Valley unrest was fuelled by worker grievances over pay, lacking safety equipment, housing allowances, entitlements and death benefits, according to The National.
Workers reportedly accessed the main mill site by cutting through a section of the wire fence.
The main office was subsequently attacked, with damage to windows, an oil analysis laboratory and a weighbridge reading panel, according to the newspaper.
A company truck reportedly had its windows smashed and the fuel tank was prepped and ready to be lit before police managed to quell the situation.
Looting reportedly extended to a nearby butcher store.
NBPO acquired Ramu Agri Industries, previously known as Ramu Sugar, in 2008.
The oil palm company said in a company presentation last month oil palm “planting and optimisation” was continuing in the Ramu region.
The Ramu subsidiary has 8000 hectares of oil palm land and 8231ha of sugar cane land.