Olam secures US$375m credit facility from European lenders

SINGAPORE – Olam International has secured a revolving credit facility aggregating US$375 million from several European lenders.

The Facility has a 364-day tenor with an option to extend for a further 364 days and is guaranteed by the company.

Proceeds from the Facility will be applied towards refinancing of OHBV’s syndicated loan and bilateral bank loans of the company and its subsidiaries.

The lenders included KfW IPEX-Bank GmbH, Erste Group Bank AG, Intesa Sanpaolo Bank Luxembourg S.A., ABC International Bank plc, DZ BANK AG, Deutsche Zentral-Genossenschafts bank, Bank of Baroda, Sumitomo Mitsui Banking Corporation, Wells Fargo Bank, National Association, UniCredit Bank AG, Habib Bank AG Zurich & AKA Ausfuhrkredit-Gesellschaft GmbH.

Earlier this year, the Singapore-based agribusiness company secured another US$350 million three-year credit facility to support efforts towards achieving digital transformation.

Olam has identified four digital building blocks that include: business strategy driven by digital; digitizing the core; new digital growth and enablers to drive the digital agenda.

With such a green loan, the firm has committed to targets focused on sustainable growth across its finances and operations.

It had earlier unveiled a six-year strategy to release US$1.6 billion cash from divesting some of its businesses including sugar, rubber, wood products and fertilizer.

The plan includes investing US$3.5 billion in a six-year period running from 2019-2024 in twelve prioritized high potential growth businesses.

Through its purpose ‘Re-imagine Global Agriculture and Food Systems’, Olam aims to meet the growing needs of the growing global population while positively impacting the community and the planet.

The company is a leading supplier of food, ingredients, feed and fibre to over 19,800 customers worldwide.

It operates in 60 countries in areas including farming, processing and distribution operations with a sourcing network of an estimated 4.8 million farmers.

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