IFC likely to extend $100m debt to Indonesia’s snack producer Nabati

IFC's Pravan Malhotra at DEALSTREETASIA's Asia PE-VC Summit 2016

The International Finance Corporation (IFC), the private investment arm of the World Bank, is looking at extending a $100-million loan to Indonesia’s PT Kaldu Sari Nabati Indonesia (Nabati), a family owned snacks business, to fuel its expansion plans.

The new project aims to expand Nabati’s wafers, biscuits and snacks factory in Majalengka in West Java and is expected to cost $133 million of which $33 million is from internally generated cash while the rest is proposed to be financed by IFC.

“IFC’s investment consists of an A Loan of up to $40 million, a B loan of up to $30 million and an MCPP loan of up to $30 million,” a pre-investment disclosure statement from IFC said on Wednesday.

Nabati is a 1985-founded snack business by Krisdianto Lesmana and his wife. The venture produces wafers, biscuits, snacks and confectioneries currently under two brands: Richeese and Richoco. The company owns three plants in Indonesia in the cities of Cicalengka, Rancaekek and Majalengka, all located in West Java.

The company is part of the Nabati Group that has few lines of business including food manufacturing, quick service restaurants, domestic sales and distribution, international sales and distribution and property and building management services.

The founders in 2005 passed the leadership to their eldest son, Erwin Lesmana with other children holding management positions.

This is IFC’s second investment proposal in Indonesia this month after a bout of microfinance-based investments recently. In December, it had announced an investment of $40 million in the form of a senior loan facility to Indonesia’s SME lender PT Radana Bhaskara Finance Tbk.

In November last year, it disclosed a financing of up to $50 million to Indonesia-based microfinance institution PT Mitra Bisnis Keluarga Ventura (MBK) to support underserved rural women borrowers.

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