Olam International prices US$120 million US debt private placement

SINGAPORE – Olam International has announced that its wholly-owned subsidiary Olam Americas Inc. (“OAI”) has successfully priced a US$120 million issuance of 5-year fixed rate notes via a private placement.

According to the company, proceeds from the issue of the Notes will be used by OAI and its US affiliates for repayment of existing debt and general corporate purposes.

The notes were reportedly placed to nine investors at a fixed coupon of 3.89% for five years.

Rabobank acted as the sole placement agent for the transaction.

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This follows last year’s US$100 million issuance of 5-year fixed-rate notes to four investors in the US via a private placement.

Through its purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam aims to meet the needs of a growing global population, while achieving positive impact for farming communities and the planet.

Headquartered and listed in Singapore, the company is a leading food and agri-business supplying food, ingredients, feed and fibre, with a value chain spanning over 60 countries, working with estimated 4.8 million farmers.

It recently secured a US$350 million three-year credit facility to support efforts towards achieving digital transformation.

Said to be the world’s first digital loan, the facility is linked to Olam’s digital maturity score based on four digital building blocks that is, business strategy driven by digital; digitising the core; new digital growth and enablers.

Olam said proceeds from the loan facility would be used in refinancing of existing loans of Olam and its subsidiaries.

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The firm had in March 2018 signed a similar three-year US$500 million sustainability-linked revolving credit facility (RCF).

In January, Olam unveiled six-year strategy with plans to release US$1.6 billion cash from divesting some of its businesses including sugar, rubber, wood products and fertilizer.

As part of the strategic review, the company said it is planning to invest US$3.5 billion in a six-year period running from 2019-2024 in twelve prioritized high potential growth businesses.

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