Royal Golden Eagle, the parent Indonesia-based conglomerate for pulp and paper producer APRIL and palm oil giant Asian Agri Group, is looking to raise $200 million for expansion, reports Debtwire.
ABN AMRO Bank, a Dutch state-owned bank, and WestLB, a German commercial bank, are arranging the debt offering. ABN Amro earlier this year helped APRIL raise $500 million.
Royal Golden Eagle is Indonesia’s tenth largest company by revenue, grossing $3.5 billion for the 12 months ending June 30, 2011, according to GlobeAsia magazine.
Environmentalists have linked both Asian Agri and APRIL to deforestation and destruction of carbon-dense peatlands. In a 2008 report Greenpeace found evidence that PT Karya Dewi Putr, a subsidiary of Asian Agri, had cleared orangutan habitat in Central Kalimantan in Indonesian Borneo. Meanwhile, NGOs including the Rainforest Action Network, WWF, and Eyes on the Forest, among others, say APRIL has converted large tracts of forests in Sumatra for acacia plantations.