Mar 18, 2011

Sierad Produce seals Rp35 bio loan

Animal feed producer PT Sierad Produce Tbk (SIPD) secured additional working capital facility of Rp35 billion from PT Bank Mandiri Tbk (BMRI-coded stock).
Based on the information disclosure submitted to Indonesia Stock Exchange today said that the loan facility, which will be used to finance business expansion, officially obtained today.
The loan facility is the additional facility from last year in form of working capital loan and investment loan worth of Rp100 billion.
According to Head of Corporate Secretary Sierad Elies Lestari Setiawan, with additional loan facility, the total loan facility obtained by Sierad is Rp850 billion which channeled by several banks in Indonesia.
Considering the low leverage level which is reflected in debt to equity ratio of less than 1, the banking loan facility is the best alternative for the company to cover its required capital.
The company is optimistic on the loan facility, since it will make the company’s performance and lead the company to achieve its target.

Disclosure: No position at the stock mentioned above.  

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