Indofood gets $125m loan

Indofood gets $125m loan

JAKARTA (JP): PT Indofood Sukses Makmur, a publicly-listed
food manufacturing company, has secured a 5-year loan worth
US$125 million from a syndication of foreign banks.

The company said in a statement yesterday that the proceeds
from the loan facility will be used to finance the final phase of
the flour milling capacity expansion of its subsidiary PT
Bogasari from 2.4 million tons per annum at present to 3.5
million tons. The expansion will be completed in 1997.

"We believe that the demand for flour will remain strong in
the domestic market," said the statement.

Indofood, which is controlled by Indonesia's largest
conglomerate Salim Group, claims to be the world's largest
manufacturer of instant noodles and Indonesia's largest maker of
wheat flour -- the raw material for noodles.

The company -- which is controlled by Liem Sioe Liong, also
known as Sudono Salim -- produces a wide range of instant noodles
and has an estimated 90 percent share of Indonesia's instant
noodle market.

The loan was arranged by Citicorp Investment Bank of
Singapore, Commerzbank, Credit Lyonnais, Kredietbank, Korea
Development Bank, NatWest Markets and Sakura Merchant Bank of
Singapore.

According to the statement, 22 international banks
participated in the loan facility, which was said to be
oversubscribed by more than 100 percent. (13)