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ublicly listed plantation firm PT Dharma Satya Nusantara has secured a loan facility worth Rp 806.1 billion (US$62.2 million) with Bank Central Asia (BCA) to finance its business expansion this year.

Dharma Satya announced in a report submitted to the Indonesia Stock Exchange (IDX) on Tuesday that it, along with a number of its subsidiaries, had signed the deal with BCA last week.

The company, which is listed on the IDX under the code DSNG, stated that the firm and its 11 subsidiaries would use the loans for investment.

Among the subsidiaries that will avail of the loan facility are PT Swakarsa Sinarsentosa, PT Dharma Agrotama Nusantara, PT Dharma Intisawit Nugraha and PT Dewata Sawit Nusantara.

Dharma Satya corporate secretary Paulina Suryanti said the loan would mature in 10 years with an interest rate of 10.65 percent.

'€œWe will use the loans to construct palm oil factories, nurture unyielding immature oil palms and develop supporting infrastructure,'€ she told The Jakarta Post.

Of the total loan, 27 percent would be for palm oil factories, 21 percent for immature and new oil palms and the remaining 52 percent for supporting infrastructure, she said.

The company spent Rp 816 billion in capital expenditure (capex) last year, with 49 percent spent on new oil palms, 43 percent on new factories and the remaining 8 percent for supporting infrastructure, according to the firm'€™s data.

Paulina said her firm would probably spend the same amount on capex this year.

As of January this year, Dharma Satya operated a total of six palm oil factories and it aims to have one more ready-to-operate factory by year-end.

The firm, which made its debut on the stock market in mid-2013, produced 1.4 million fresh fruit bunches, 391,000 tons of crude palm oil (CPO), 53,000 tons of palm kernels and 18,200 tons of palm kernel oil last year.

Other than palm oil products, Dharma Satya also produces timber products consisting of panels, doors and flooring.

The company booked a 27.6 percent increase in net sales to Rp 4.9 trillion last year from Rp 3.84 trillion in 2013.

The firm'€™s net profits stood at Rp 649.7 billion in 2014, more than triple its net profits amounting to Rp 203.17 billion in the previous year.

Paulina said that her firm expected to maintain growth in its net sales this year despite lower CPO prices compared to last year.

The CPO price hit $672 per ton on April 23, down 17.5 percent from around $815 per ton during the same period last year.

'€œWe'€™ll try to offset the declining prices by boosting our productivity and efficiency,'€ Paulina said.

Dharma Satya'€™s total liabilities amounted to Rp 4.9 trillion last year, while its equity stood at Rp 2.3 trillion.