Olam completes re-financing US$375m credit facility from European lenders

SINGAPORE – Olam Holdings B.V. (“OHBV”), wholly owned subsidiary of global food and agri-business company, Olam International (“Olam’’), has 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.

Earlier last 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 has also re-organised its diverse business portfolio into two new operating groups; Olam Food Ingredients and Olam Global Agri.

Olam’s operations will now focus on food ingredients and global agri-business as part of the company’s strategy to reposition the business for further growth in line with key consumer trends and market opportunities.

The Olam Food Ingredients (OFI) unit will consist of Olam’s businesses of cocoa, coffee, edible nuts, spices and dairy and will offer value-added food products and ingredients.

Olam claims that the food ingredients business has built a unique global value chain presence including its own farms, farm-gate origination and manufacturing facilities to help the business meet changing consumer preferences.

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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