IFC Provides $45 Million Financing to Central Pertiwi Bahari
CPB to replace bank debt and expand shrimp feed capacity, shrimp processing operations
The International Finance Corporation, the private sector arm of the World Bank Group, today announced an agreement to provide a loan facility of up to $45million to PT. Central Pertiwi Bahari, a subsidiary of Charoen Pokhpand Group. CPB is Indonesia’s leading integrated shrimp operator and a major exporter of shrimp products. CPB operates primarily in South Sumatra and has created over 5,000 jobs in a rural area with limited economic activity.
IFC’s loan facility will allow CPB to replace its existing $19.5 million bank debt with longer maturity IFC financing. The remaining proceeds will be used to expand its shrimp feed capacity, shrimp processing operations and fund working capital needs.
“This loan facility will support sustainable development in Indonesia’s aquaculture, where risks specific to this sector limit longer term financing available,” said IFC Country Manager German Vegarra. “IFC plays a developmental role by offering appropriate term financing and environmental support that can allow PT. Central Pertiwi Bahari achieve its strategic goals of improved capacity and access new export markets.”
IFC Agribusiness Director Jean-Paul Pinard said “IFC is pleased to support the expansion of a leading export oriented company from Indonesia, helping eliminate capacity bottlenecks and increase production. IFC’s financing will assist Charoen Pokhpand, the leading agribusiness group in Asia in expanding its Indonesian shrimp operations to meet increased export demand for shrimp.”
"This is a major milestone in the development of PT. Central Pertiwi Bahari. This IFC financing is an important vote of confidence in CP's management strength and credibility in aquaculture and in the long term prospects of the Indonesian aquaculture industry,” said Ben Jiaravanon, Vice Chairman of CP Group Indonesia. “We hope that IFC will become CP's long term partner in developing our shrimp business and our other Aquaculture activities in Indonesia."
“This loan will help us in developing the needs of our expanded operations in food processing and feed mill capacity,” said PT. Central Pertiwi Bahari President Director Harjono Djanoko.
PT. Central Pertiwi Bahari is part of the Charoen Pokhpand Group of companies. CP consists of operations in Indonesia, Thailand and China, and is the largest producer of animal feed, poultry and shrimp in Asia. CP Indonesia is focused on the shrimp and poultry sectors through separate companies with aggregate group sales of over US$1 billion.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries.