Olam secures $204m loan

The loan is linked to the group's sustainable initiatives.

Olam International secured a loan worth $204m (US$150m) to buy sustainable cotton under the Better Cotton Initiative (BCI).

A 2-year tenor was applied to the loan, with Olam Treasury Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd.

"This [loan] supports Olam’s procurement of sustainable cotton via the Better Cotton Initiative whilst combining Olam’s operational ability, leadership position in cotton and sustainability focus with the banks’ objective of supporting more financing linked to sustainable activities,” said N Muthukumar, Group CFO, Olam.

Since its inception in 2009, Olam has been involved with BCI and works with smallholders in farmers in Africa for the sustainable production of cotton.