Olam Group subsidiary secures multi-tranche sustainability-linked loan
Olam food ingredients (ofi) seeks to deliver sustainable food and beverage ingredients.
SGX-listed Olam Group revealed that its F&B subsidiary, oli, acquired a $2.359b (US$1.750b) multi-tranche sustainability-linked facility.
Rishi Kalra, Executive Director and Group CFO of ofi said the newly secured facility boosts their strong liquidity position, sustainability efforts, and growth strategy to “deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix to customers across the globe.”
Olam Treasury is the designated borrower of the facility, which is initially guaranteed by Olam Group. The Group will then transfer to ofi, following the subsidiary’s planned IPO and demerger.
The facility’s proceeds will be applied towards the refinancing of ofi’s existing loans and general corporate purposes.
The facility comprises a two-year and three-year Revolving Credit Facility and a three-year term loan. The interest margin on the facility is connected to the achievement of certain sustainability targets and could be reduced if those targets are met.
Nearly 20 banks from Australia, Canada, China, Europe, Japan, the Middle East, Singapore and the United States participated in the Facility across four tiers. HSBC has been designated as the facility agent.