Olam International successfully completes US$1.5bn debt refinancing

SINGAPORE – Global food and agri-business Olam International Limited and its wholly owned subsidiary, Olam Treasury Pte. Ltd, have secured a multi-tranche revolving credit facility aggregating US$1.525 billion.

The Facility consists of three tranches; a 364-day revolving credit facility of US$610.0 million; a 2-year revolving credit facility of US$457.5 million and a 3-year revolving credit facility of US$457.5 million. 

The company said that proceeds from the facility will be applied towards refinancing of its own existing loans as well as those of its subsidiaries.

The facility was secured from global financial institution including; The Hongkong And Shanghai Banking Corporation, National Australia Bank, Standard Chartered Bank, BNP Paribas and JP Morgan Chase Bank among others.

Jayant Parande, President and Global Head of Treasury and Investor Relations of Olam said: “This refinancing is an integral part of our ongoing efforts to proactively manage our capital structure.

“I would like to thank all the participating banks for their strong support in making this transaction a success.” 

In July, the agribusiness company announced that it had secured a revolving credit facility aggregating US$375 million from several European lenders to be applied towards refinancing of OHBV’s syndicated loan and bilateral bank loans of the company and its subsidiaries.

This is in addition to an earlier US$350 million three-year credit facility to support efforts towards achieving digital transformation and a US$525 million financing to enable the company  meet sustainability key performance indicators (KPI).

The business is executing on the four strategic pathways for growth as set out in the 2019-2024 Strategic Plan which include strengthening, streamlining and focusing its business portfolio as well as driving margin improvement by enhancing cost and capital efficiency.

During the the first half of 2019 Olam International reported a steady operating performance, recording 16% growth in revenues to US$ 11.47 billion, from US$9.86 billion recorded in a similar period last year.

The company said that despite political and economic uncertainties are likely to affect global trading conditions in 2019, it was confident that diversified portfolio provides a resilient platform to navigate the challenges in both the global economy and commodity markets.

The company has also believes that it will continue generating additional revenue streams by offering differentiated products and services, and explore partnerships and investments in select new engines for growth.

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