18/08/2012 (Stock Market Wire) - Anglo-Eastern Plantations subsidiary PT Sawit Graha Manunggal has agreed a US$35m loan with PT Bank DBS Indonesia to develop the Kalimantan plantation.

AEP - which controls approximately 81.2% of the shares in SGM - has agreed to guarantee the liabilities and obligations to DBSI under the loan agreement.

SGM will use the loan for funding plantation and development of approximately 11,500 hectares of palm oil (of which 8,428 hectares have already been planted), working capital and the construction of a CPO mill and other fixed assets in Kalimantan, Indonesia.

Initial development of the Kalimantan plantation started in 2008 and harvesting has started for 300 hectares of palm oil in 2012.