Tuesday, October 18, 2011

Charoen Pokphand Indonesia - New loan facility a boon to expansion

by Kim Eng Securities

Charoen Pokphand Indonesia has signed US$250m syndicated loan facilities from several banks at the end of last month. Management said half the loan is denominated in rupiah with an interest rate of JIBOR+2.75%, and the other is a US$ loan facility at LIBOR+2.75%. The poultry company targets a Rp2.5t expansion capex over the next three years. Of this amount, Rp1t each is for feed mill and DOC, and Rp500b for processed chicken. Maintain BUY.

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