Wilmar Expanding JV in Nigeria
PZ Wilmar and the Nigerian Institute of Oil Palm Research announced on September 9, 2016 that they signed a Memorandum of Understanding to boost palm oil production.
According to the Nigerian newspaper Leadership, the Executive Director of the Nigerian Institute for Oil Palm Research, Omorefe Asemota, said, “The MoU is a milestone as PZ are major stakeholders in the development of any industry and the agricultural industry needs investors, in this particular case, PZ Wilmar”.
PZ Wilmar is a joint venture between PZ Cussons (PSC:LN) International and Wilmar International Ltd (WIL:SP). Their refinery in Lagos, Nigeria can process up to 1,000 metric tons crude palm oil per day, one-fifth of all palm oil refined in Nigeria. Both PZ Cussons (PSC:LN) and Wilmar International are members of the Roundtable on Sustainable Palm Oil (RSPO). PZ Wilmar has planted 30,000 hectares in Nigeria. Its fresh fruit bunches are now starting to be processed by its refinery.
In 2013, Wilmar International (WIL:SP) committed to an industry groundbreaking No Deforestation, No Peat, No Exploitation (NDPE) policy. It is not yet clear if this same policy covers PZ Wilmar – the joint venture between PZ Cussons and Wilmar International.
Eagle High Plantations Secures $116 Million Loan from Bank Negara Indonesia
On September 9, 2016 Bank Negara Indonesia announced it had granted Eagle High Plantations (BWPT:IJ) a $116 million loan to refinance the debt of its subsidiaries Mandiri Kapital Jaya, Multikarya Sawit Prima, Arrtu Agro Nusantara, Arrtu Borneo Perkebunan and Arrtu Plantation. The proceeds will also be used to double capacity at its palm oil refineries in Papua and West Kalimantan.
Sinar Mas Agro Resources and Technology Credit Rating Downgraded to A+
Pefindo’s rating of Sinar Mas Agro Resources and Technology’s shelf-registered $76 million bond (1/2012) was downgraded to A+ from AA-. Pefindo’ maintains its outlook of Sinar Mas Agro Resources and Technology (SMAR:IJ) as “stable”. June 7, 2016, Pefindo had previously affirmed its rating of SMAR as AA- with its outlook maintained at “negative.”