Sierad Produce Obtains Additional Loan Facility From Mandiri Bank
In line with business expansion, on March 18, 2011 PT. Sierad Produce Tbk ( "Company") signed a loan agreement with PT. Bank Mandiri (Persero), Tbk. (“Bank Mandiri”) for working capital loan facility in the amount of Rp. 35 Billion. This facility is an additional loan where the previous one was obtained in 2010 in the amount of Rp.100 billion, for working capital and investment loan.
Thereby, the total loan acquired by the Company until now is approximately Rp. 850 billion which comes from a few banks in Indonesia. Considering the low relative leverage (Debt to Equity Ratio < 1), so bank loan is the best alternative for the Company to fulfill their financing requirements for the time being.
The Company is optimistic that with this additional loan , the Company's performance will be better and able to achieve predetermined targets.