Sri Lankaâ€™s Bogawantalawa to replant tea, upgrade factories with debt issue
ECONOMYNEXT – Sri Lankan regional plantations company Bogawantalawa Tea Estates has told shareholders it would use funds raised from a debt issue to replant tea fields, upgrade factory machinery, settle loans and set up solar power plants.
A stock exchange filing said Bogawantalawa Tea Estates plans to raise 850 million rupees by issuing bonds of up to seven years with the option to convert to ordinary shares on maturity.
The circular to shareholders described how the funds would be used with 250 million rupees to be used for field development activities and 200 million rupees to buy specialised machinery and laboratory equipment.
Each year 150-200 million rupees is needed to rehabilitate soild on estates, soil building and tea re-planting and in-filling over 150 hectares, the company said.
New machinery is needed to make specialty teas for which markets are developing.
Another 200 million rupees would be used to settle high cost debt while 150 million rupees would be to develop identified solar power projects.
(COLOMBO, December 07, 2018)