Landbank backs Sagittarian Agricultural with P 1.3-B loan
Agribusiness company Sagittarian Agricultural Philippines Inc. (Sapi) has secured a P1.3-billion loan from the Land Bank of the Philippines (Landbank).
The fund is intended to support the development of a feed mill facility in Isabela province, the lender said in a statement on Wednesday.
Landbank said that P1.2 billion of the loan will partially finance the construction of a 15-hectare feed mill complex in Ilagan City. The remaining P100 million will support Sapi’s working capital.
The state-run bank also said the planned facility is expected to maximize the province’s abundant corn supply. It is also expected to help increase corn prices to P2 per kilogram (kg) from P1 per kg previously.
No other details were provided about the planned facility, including its expected timeline of completion and its capacity. However, Landbank said it sealed a financial deal with Sapi on March 4.
The feed mill complex will be leased to Charoen Pokphand Foods Philippines Corp. (CPF). It is the local subsidiary of Thai agro-industrial and food business Charoen Pokphand Foods PLC.
Isabela province
Sapi is an Isabela-based agricultural company engaged in poultry production, hog-raising, fish production and grains trading.
According to its website, the firm envisions itself to be the leader in integrated farming, animal production, construction, real estate and allied agribusiness services in the country and abroad.
On the other hand, CPF Philippines operates a vertically integrated agro-industrial and food business, including livestock and aquaculture.
The Thai firm is engaged in the businesses of feed, farm and food.
