Sierad Produce Obtains Additional Loan Facility from Bukopin Bank
In line with business expansion, on December 17,2010 PT. Sierad Produce Tbk ( "Company") signed an agreement with PT. Bank Bukopin Tbk. (“Bukopin”) for Working Capital Loan (‘WCL’) with plafonds of Rp. 35 Billion. This facility is an additional loan from Bukopin where the previous one (Rp 40 billion) was obtainedon July 2010. Thereby, total loan facility from Bukopin now is Rp. 75 billion.
Beside Bukopin, the Company also obtains financing facility from Bank Negara Indonesia (“BNI”), Bank Rakyat Indonesia (“BRI”), Bank Mandiri (“Mandiri”), Bank Syariah Mandiri (“BSM”) and Bank RZB – Austria (“RZB”). Due to low leverage level (Debt to Equity Ratio<1), bank financing is considered to be the best alternative for the Company to finance its funding needs for the time being.
The company optimists this additional loan facility will improve its performance to achieve the target set.