Annual Report 2012 - IOI Group

CORPORATE DEVELOPMENTSOn the plantation front, a notable achievement for the Group wasthe successful listing of our associate company, BAL, on the SGXon 12 April 2012. BAL, with interest in over 92,000 hectares ofplanted area and six palm oil mills in Indonesia, had priced theirshares at an initial issue price of SGD74.5 sen per share. Since thelisting, BAL’s share price has performed remarkably well. It hasappreciated by approximately 53% to SGD1.14 per share as at 14September 2012.In our property business, the Group has made another significantacquisition in Singapore during the year. The Group hadsuccessfully tendered for a piece of prime land measuring 2.4hectares at the Clementi area at a sum of approximately SGD408million. This land, which is earmarked for mid-end condominiumdevelopment, is well located with proximity to public amenitiessuch as Clementi MRT Station, Clementi mall as well as severalpopular schools and polytechnics.Bottom: IOI Oleochemical Divisioninvested RM130 million to expandits current fatty esters productionfacilities at Prai, Penang.As for our downstream manufacturing business, our lipid enzymtecplant located within the Group’s Pasir Gudang complex wascompleted during the year. This lipid enzymtec plant will providethe Group with competitive advantage in terms of quality and costfor our global specialty fats operation and closer proximity to thestill vibrant emerging economies of China and East Asia. In linewith our strategy of going into more specialised oleochemicalsbusiness in the foods, pharmaceuticals and cosmetics segments,our wholly owned subsidiary, Esterchem (M) Sdn Bhd, hasembarked on an expansion of its fatty esters production capacityin Prai, Penang, by another 20,000 MT per annum. This expansionproject, which has been identified by the Government as anEconomic Transformation Programme (“ETP”) Project, is expectedto be completed by mid-2013.On the Corporate front, another notable achievement for theGroup was the establishment of the Euro Medium Term NoteProgramme (“EMTN Programme”) with an initial programme sizeof up to USD1.5 billion. The establishment of this EMTN Programmeprovides the Group with further avenue to tap into the liquidity ofthe international debt capital markets. Subsequently, on 27 June2012, the Group successfully issued a USD600 million 10-yearNotes at an attractive fixed rate of 4.375% per annum. Theproceeds from this issuance will serve as cash reserve for theGroup’s future expansion plans including potential acquisitionopportunities, working capital and for repayment of its existingborrowings.Annual Report 2012IOI CORPORATION BERHAD 9