Sierad Produce Obtains Additional Loan Facility From Syariah Mandiri Bank (BSM)
In Line with business expansion, on September 2, 2010 PT. Sierad Produce Tbk ( "Company") signed a loan agreement with PT. Bank Mandiri Syariah (BSM) for obtaining additional loan facility in the amount of Rp. 84 Billion, devoted to Working Capital Loan (“WCL”) for the slaughter house unit Rp.20 billion, Investment loan for additional facility in slaughter house located in Parung-Bogor Rp. 14 billion and investment loan for an opening of fresh chicken meat outlet-Belmart Rp.50 billion. For Information, before this the company obtain the loan facility from BSM which is WCL in the amount of Rp. 40 billion
Thereby, the total loan acquired by the company until now approximately Rp. 700 billion from a few bank in Indonesia. Considering of the low relative leverage (Debt to Equity Ratio < 1), so banking loan sector is the best alternative for company to fill their principal needs.
The Company is optimistic that with the addition of this loan facility then the Company's performance will be better and able to achieve predetermined targets.