Jakarta, January 19, 2006—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
"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
“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. For more information, visit www.ifc.org.