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.