Loan for Charoen Pokphand

JAKARTA (JP): Citicorp International Limited announced yesterday that it has arranged a US$40 million revolving credit facility for PT Charoen Pokphand Indonesia and PT Charoen Pokphand Jaya Farm.

Citicorp said in a statement that the loan facility, sealed in a contract signed Monday, was originally to be US$30 million but that the amount had been raised to $40 million as a result of an oversubscription of 157 percent, involving 11 banks.

Charoen Pokphand Indonesia and Charoen Pokphand Jaya Farm are, respectively, leading Indonesian animal feed producers and poultry breeders.

Charoen Pokphand Indonesia, which has feed mills in Jakarta, North Sumatra and East and West Java, concentrates on poultry and shrimp feed production. With a leading market position in Indonesia, the company has with a total production capacity of 1.4 million tons per year.

Charoen Pokphand Jaya Farms, a producer of day-old-chick parent stock and final stock with a capacity of 100 million day- old chicks per year, is the market leader in Indonesian poultry breeding.

The statement said that the funds raised from in the syndication will be used to repay an existing syndicated loan maturing this month and to finance the establishment of new production facilities in Surabaya, East Java, and in Medan, North Sumatra.

Citicorp is the sole arranger and agent of the loan facility. Other members of the management group include Citibank N.A., the Singapore branch of Commerzbank Aktiengesellschaft and the Singapore branch of Dai-Ichi Kangyo Bank Limited. (31)