JAKARTA (TheInsiderStories) – Animal feed producers owned by Thai conglomerate, Jiaravanon, PT Charoen Pokphand Indonesia Tbk (IDX: CPIN) reportedly sought a loan facilities worth of US$307.9 million in the denomination of the United States Dollar (US) and Rupiah. The company targets the loans in the local currency of Rp3 trillion ($209.79 million) and $100 million in American Dollars.
Some sources say, Citi and DBS Bank have been mandated as the lead underwriters and book-runner to handle the syndicated loans. Its also mentioned that the company only involved banks that had taken part in the previous syndication.
Based on Charoen Phokpand‘ financial statement data, several banks have provided syndicated loans to Citigroup Global Markets Singapore Pte. Ltd., Singapore, Australia and New Zealand Banking Group Ltd., Australia, PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, DBS Bank Ltd., PT Bank Mandiri (Persero) Tbk, PT Bank DBS Indonesia and Sumitomo Mitsui Banking Corporation .
On Nov. 20, 2014, the company obtained a syndicated loan facilities from Citigroup Global Markets Singapore Pte., Ltd., Singapore, Australia and New Zealand Banking Group Ltd., Australia, BCA, CIMB Niaga, DBS Bank Ltd., Bank Mandiri, Bank DBS Indonesia and Sumitomo Mitsui Banking Corporation worth $200 million and Rp2.4 trillion. Then on November 11, 2015, there were $100 million from the same creditors and several other banks.
Until the first quarter of 2020, Charoen Phokpand posted a net profit of Rp922.26 billion, up 13.64 percent compared to the same period last year of Rp811.54 billion. It’s just that net sales actually fell 3.94 percent to Rp13.88 trillion compared to the first quarter of 2019 worth Rp.14.45 trillion. This was caused by a number of business segments that declined compared to the first quarter of 2019.
The animal feed producers’ revenue also dropped to Rp6.56 trillion compared to the first quarter of 2019 valued at Rp7.05 trillion, the broiler segment edged down to Rp3.96 trillion, the day-old chicks segment also fell to Rp1.5 trillion from Rp1, 86 trillion. The processed chicken business revenue increased to Rp1.39 trillion from Rp1.11 trillion previously, other business lines amounted to Rp462.07 billion from Rp449.36 billion.
Charoen Phokpand‘ business includes broiler breeding, slaughterhouse and non-poultry meat packing activities, poultry slaughter house and packing activities, industrial processing and preserving of meat and poultry products, and fruit and vegetable freezing industry.
They also do business in the industry of mixed flour and flour dough, the food and processed food industry, the cooking spice and food flavoring industry, the pet food ration industry, the pharmaceutical product industry for animals, and the plastic goods industry for packaging.
Charoen Phokpand also does business in the household equipment and equipment industry (excluding furniture), large-scale trade in live animals, large-scale trade in chicken and processed chicken meat, warehousing and storage, cold storage activities. The controlling shareholder of the company is the Jiaravanon family from Thailand.
The company was founded under the name PT Charoen Pokphand Indonesia Animal Feedmill Co. Ltd., on Jan. 7, 1972. The company entered the stock exchange in 1991, offering as many as 2.5 million shares at an offering price of Rp5,100 per share.
The Jiavanon family has also invested in the country, but then began to reduce its portion in several sectors including banks. For example, in February 2018, he decided to leave PT Bank Agris Tbk. At the bank, Benjamin Jiaravanon’s family ownership amounted to 0.28 percent of shares and PT Dian Intan Perkasa with 82.59 percent shares.
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