Bumitama Agri kept at 'buy' by DBS with $1.32 target price

Stock Name: Bumitama Agri
Company Name: BUMITAMA AGRI LTD.

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.32

SINGAPORE (Feb 5): Bumitama Agri announced that it had entered into facility agreements with several banks, including DBS, UOB and OCBC Bank, among others, for total committed and uncommitted debt facilities of US$265 million.

The loan will fund general corporate and working capital requirements, as well as refinance existing debts.

In a Feb 4 report, analyst Ben Santoso writes that the debt facilities should not have a significant impact on Bumitama Agri's net gearing.

Bumitama Agri's net gearing should settle at 32.5% based on his current forecast.