SOP gives another corporate guarantee to refinery unit

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  • Wednesday, 16 Apr 2014

KUCHING: Sarawak Oil Palms Bhd (SOP) has provided additional corporate guarantee of RM45mil for wholly-owned unit SOP Edible Oils Sdn Bhd (Sopeo) for the trading of palm oil/palm oil products in favour of Louis Dreyfus Commodities Asia Pte Ltd.

The Miri-based plantation company said it had agreed to stand as a guarantor for the performance of selling/buying palm oil and/or palm oil products between Sopeo and Louis Dreyfus, together with all obligations in connection with the said trading activities.

“The aggregate amount of guarantee is RM45mil,” it said in a filing with Bursa Malaysia.

Last month, SOP announced corporate guarantee to Sopeo for banking facilities up to RM145mil from two banks — one was from Export-Import Bank of Malaysia Bhd (Exim Bank) comprising a line of Islamic facility under pre-shipment supplier financing-i of up to RM100mil, and a forward foreign exchange-i facility of up to RM10mil.

The other was for Sopeo’s additional banking facility of RM35mil granted by Hong Leong Bank Bhd consisting of trade (import/export/forward exchange contract) facility.

Sopeo specialises in the refining of crude palm oil (CPO) and crushing of palm kernels into refined, bleached and deodorised (RBD) palm oil, olein and stearin as well as palm fatty acid distillates, palm kernel expellers and palm kernel oil.

The kernel crushing plant in Kidurong Industrial Estate, Bintulu has an installed daily capacity of 500 tonnes.

SOP group owns six palm oil mills that process fresh fruit bunches (FFBs) into CPO. It has more than 63,000ha of oil palm in 36 estates, mostly in the northern region.

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