According to the Corporate Secretary of Sierad, Elies Lestari Setiawan, currently the company is in the process of calculating and selecting the appropriate time to issue the bond.  “It is going to be in the near future.  We will use the fund to finance the working capital and business expansions", stated Elies during the press conference after Annual General Meeting of Shareholders and Extraordinary General Meeting of Shareholders, on yesterday Tuesday (5/6). Elies stated that the working capital needed by the company this year is in the range of Rp. 200 billion - Rp. 300 billion

The competitor of Sierad, PT Japfa Comfeed Indonesia Tbk, also in the middle of issuing bonds titled Japfa I/2007 valued at Rp. 500 billion with the interest rate in the range of 12,33% - 12,87% per annum.  This bond currently is in the book building process up to 10 June 2007 and will be offered to investors on 26 June - 28 June.  Japfa plans to list its obligation in the Surabaya Stock Exchange on 5 July.

Erik Surono, Managing Director of Sierad, adds that this year the company budgets its capital expenditure of  Rp. 50 billion. All of this fund will be spent to gather more small to medium enterprises chicken breeders in the contract-farming program, especially in Java.

"Through this program, we expect that our production volume of day old chicken (DOC) can increase by 30%, from around 900.000 weekly in last year into 1,2 million weekly this" he said. So far, Sierad has managed to recruit 1,000 SMEs; half of it is located in West Java.  The rest will be scattered around Central Java and East Java.

Up to the end of 2007, this public company with its ticker code of SIPD targeted that its sales will increase by 40% to become Rp 1,54 trillion compare to Rp. 1,1 trillion in 2006.  While net profit is targeted to reach Rp 61,5 billion, or up around 20% from late year that reached Rp 41 billion.

The sales composition is still dominated by the feedmill production or around 70% together with hatchery, breeding, and livestock breeding (breeding farm) of 25%. The remaining balance will come from the chicken slaughterhouse.

For such expansion, the Annual General Meeting of Shareholders also agreed to pay for the dividend.  It is also because SIPD still has to finance the 2,77 trillion that has been experienced 1997 - 1998.

For such expansion, the Annual General Meeting of Shareholders also agreed not to pay for the dividend.  It is also because SIPD still has to finance the deficit of retained earning of Rp 2,77 trillion that has been experienced since the monetary crisis of 1997 - 1998.

As the solution, management SIPD is considering the option of quasi reorganization by revaluing the whole assets of the company.  If, it is not adequate to cover the deficit, the shareholders are ready to provide funds as additional capital.