It will support the firm’s efforts towards digital transformation.
Olam International, and its wholly owned subsidiary Olam Treasury (OTPL), have secured its first digital loan, a three-year digital-linked revolving credit facility for $474.35m (US$350m), an announcement revealed.
This is said to be the world’s first “Digital Loan” that will support Olam in its ongoing efforts towards digital transformation.
Olam and the participating banks have agreed on annual improvement targets over the course of the facility which, if achieved, would trigger a reduction in the interest rate. Proceeds from the facility will be applied towards refinancing of existing loans of Olam and its subsidiaries.
“This financing can be a good template to drive the agriculture sector’s digital transformation and is another example of Olam’s commitment towards our purpose of Re-imagining Global Agriculture and Food Systems,” Olam’s executive director and COO, A Shekhar, said in a statement.
Olam has appointed 7 banks as Mandated Lead Arrangers who will be participating in the Facility in equal parts, comprising of Banco Bilbao Vizcaya Argentaria, S.A. (“BBVA”), Singapore Branch, DBS Bank, First Abu Dhabi Bank P.J.S.C. Singapore Branch, JPMorgan Chase Bank N.A., Mizuho Bank, Natixis Singapore Branch & Standard Chartered Bank. BBVA is the digital co-ordinator and facility agent.
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