June 22, 2007

Charoen Pokphand gets loan for expansion in Indonesia
 

PT Charoen Pokphand Indonesia (CPI) has secured a syndicated loan of US$125 million from 10 banks for refinancing and expansion in Indonesia, according to CPI President Franciscus Affandi.

The 10 banks involved are DBS Bank Ltd. (Singapore), PT Bank Central Asia, PT Bank Rabobank International Indonesia, PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Lippo, ING Bank NV Singapore branch, PT Bank Mizuho Indonesia, DZ Bank AG Singapore branch, and PT Bank Resona Perdania.

Affandi said the loan would come in three tranches of US$65 million (amortising term, tenor of five years), US$40 million (bullet term, tenor of three years) and US$20 million (revolving loan, tenor of three years).

CPI has the option to extend the maturity of the US$40 million and US$20 million tranches for up to two years, pending creditors' approval, added Affandi.

50 percent, 25 percent and the remaining 25 percent of the loan proceeds have been earmarked for refinancing, supporting construction of a new feed mill in Makassar, South Sulawesi province, and strengthening CPI's working capital respectively, Affandi said.

Affandi added that the Makassar feed mill would have an annual production capacity of 300,000 tonnes of poultry feed, bringing CPI's total annual production capacity of poultry feed to 3.2 million tonnes. Construction is expected to finish in September this year and production should commence in December.

Finance Director Thomas Effendy expects CPI to post US$859.416 million in sales for 2007, up from US$709.526 million last year. Net profit is seen to rise 13-15 percent from Rp157.06 billion (US$17.545 million) in 2006.