CPF wins $740mn syndicated loan
Charoen Pokphand Foods' subsidiary CPF Investment Ltd has won a US$740 million syndicated loan from five Thai banks, to finance the acquisition of CP Pokphand Company Limited (CPP).
The banks are Bangkok Bank, Krung Thai Bank, CIMB Bank Berhad, Thanachart Bank and Industrial & Commercial Bank of China (Thai).
CPP’s structure is divided into two groups – one which is doing business in China, mainly focused on animal feed, and another which is a fully integrated agribusiness in Vietnam. With this purchase, CPF Group will become the largest agro-industrial company in Asia Pacific with subsidiaries in 12 countries covering 3 billion consumers.
“CP Group is one of the outstanding success stories of Thai companies going offshore and CPF is a shining star in the CP Group, with investments in 12 countries around the world," said Chartsiri Sophonpanich, president of Bangkok Bank which arranged the syndication.
CPP is the second-largest animal feed manufacturer in China, with a market share of 4 per cent, and a distribution network spread over 28 provinces and special territories in China. Apart from the animal feed business, which accounts for 95 per cent of its business in China, other business activities of CPP include the sale of antibiotic vet drug and the production of motorcycles.
In Vietnam CPP is also a major market player in the fully integrated agribusiness. CPP is the largest animal feed and aquaculture feed manufacturer in Vietnam. It holds the No. 1 position for commercial farming of swine, poultry and shrimp and is also active in the food production business in Vietnam.
