SINGAPORE – Leading global food and agri-business, Olam International has announced that its wholly owned subsidiary, Olam Americas Inc. (OAI) has successfully priced a US$50 million issuance of 5-year fixed rate notes via a private placement at a fixed coupon of 3.27%.
Rabobank acted as the sole placement agent for the transaction.
Proceeds from the issue of the Notes will be used by OAI and its US affiliates for general corporate purposes.
Olam America started operations in 2002. The company offers edible nuts, beverage ingredients, food staples, spices, vegetables, and industrial raw materials, as well as provides commodity financial services.
The announcement follows Olam Treasury Pte. Ltd. (OTPL), another subsidiary of Olam International, securing a medium-term Samurai loan facility aggregating JPY 25 billion (US$232m) in the Japanese market.
The funding from the Japanese loan market is its third Sumaria Facility since 2017 and its proceeds will be applied towards refinancing of OTPL’s existing loans and general corporate purposes.
Guaranteed by Olam, it involves a three-year tranche of JPY18.75 billion (US$174m), and a five-year tranche of JPY6.25 billion (US$58.1m).
MUFG Bank Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation (Singapore Branch) and Development Bank of Japan Inc. acted as Mandated Lead Arrangers and Bookrunners (MLABs) for the Facility, with Mizuho Bank Ltd. acting as Facility Agent.
The Facility will be syndicated by the MLABs in the Japanese loan market.
Also the agribusiness company has recently completed the re-financing of its revolving credit facility aggregating US$375 million, from several European lenders.
The Facility has a 364-day tenor and is guaranteed by Olam International Limited.
The lenders include KfW IPEX-Bank GmbH, Erste Group Bank AG, London Branch, Intesa Sanpaolo Bank Luxembourg S.A., Amsterdam Branch, ABC International Bank plc, Frankfurt Branch, Bank of Baroda, Singapore Branch, Sumitomo Mitsui Banking Corporation Singapore Branch and AKA Ausfuhrkredit-Gesellschaft GmbH.
KfW IPEX-Bank, focusing on international project and export financing is the Facility Agent.
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