SINGAPORE– Olam Agri, the food, feed and fiber operating group of Olam Group Limited has secured a US$2.9 billion loan facility based on Poseidon Principles, which provide a framework for integrating climate considerations into lending decisions to promote international shipping’s decarbonization.
The principles are consistent with the policies and ambitions of the International Maritime Organization, including its ambition for greenhouse gas emissions to peak as soon as possible and to reduce shipping’s total annual GHG emissions by at least 50% by 2050.
N Muthukumar, Group CFO of Olam Group and CEO of Operations at Olam Agri said the facility is closely aligned with Olam Agri’s purpose of transforming food, feed and fiber for a more sustainable future and strengthens the company’s resolve to improve carbon management in its freight business.
The Facility, which is guaranteed by Olam Group, has Olam Agri subsidiaries Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd. as coborrowers with a tenor of three years. Proceeds from the Facility will be applied towards refinancing of Olam Agri’s existing loans and for general corporate purposes.
This Facility is closely aligned with Olam Agri’s purpose of transforming food, feed and fibre for a more sustainable future and strengthens our resolve to improve carbon management in our freight business.
Participating in the facility was a large and diverse group of 16 lenders including, BNP Paribas Citigroup, DBS Bank Ltd. (“DBS”), JP Morgan, Chase Bank N.A., Mizuho Bank, Ltd., MUFG Bank Ltd. (“MUFG”), Natixis, The Hongkong And Shanghai Banking Corporation Limited (“HSBC”), Australia And New Zealand Banking Group Limited, Barclays Bank Plc., Banco Bilbao Vizcaya Argentaria S.A., ING Intesa Sanpaolo S.p.A., National Australia Bank Limited, Scotiabank and Westpac Banking Corporation.
With a strong presence in high-growth emerging markets and products across grains & oilseeds, animal feed & protein, rice, edible oils, specialty grains & seeds, cotton, wood products, rubber and commodity financial services, Olam Agri is at the heart of global food and agri-trade flows with more than 40 million MT in volume traded annually.
Focused on transforming food, feed and fibre for a more sustainable future, it aims at creating value for customers, enable farming communities to prosper sustainably and strive for a food-secure future.
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