SINGAPORE – Agri-food company, Olam International has announced in a statement that it has upsized its flagship debt facility by US$300 million to US$1.98 billion which it will use it to refinance existing loans.
Four new banks have joined Olam’s multi-tranche revolving credit facility that was first secured on September. Bank of Baroda has come on as a senior mandated lead arranger; Bank of China and Unicredit Bank are mandated lead arrangers, and Westpac Banking Corporation as a lead arranger, taking the total banking group to 25 banks.
The upsized facility, which has Olam’s subsidiary Olam Treasury as a co-borrower, comprises three tranches – a 364-day revolving credit facility of US$790 million, a two-year revolving credit facility of US$790 million, and a three-year revolving credit facility of US$395 million.
“Proceeds from the facility will be applied towards refinancing of existing loans of Olam and its subsidiaries,” said the group.
Olam secured a multi-tranche revolving credit facility aggregating US$1.675 million in September which had Olam’s wholly owned subsidiary, Olam Treasury Pte. Ltd. as a coborrower.
The Facility saw participation from a large and diverse group of 21 lenders that comprised nine Senior Mandated Lead Arrangers – BNS Asia Limited, Commonwealth Bank of Australia, Credit Suisse AG, DBS Bank Ltd., The Hongkong And Shanghai Banking Corporation Limited, JP Morgan Chase Bank N.A., Mizuho Bank, Ltd., National Australia Bank Limited, Natixis; seven Mandated Lead Arrangers – Australia And New Zealand Banking Group Limited, BNP Paribas, Hang Seng Bank Limited, ING Bank N.V., MUFG Bank Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and five Lead Arrangers – Banco Bilbao Vizcaya Argentaria S.A., Banco Santander S.A., Barclays Bank Plc., Citibank N.A., First Abu Dhabi Bank P.J.S.C.
Proceeds from the Facility will be applied towards refinancing of existing loans of Olam and its subsidiaries.
In June, it secured a US$250mn sustainability-linked revolving credit facility (RCF), the pricing of which will be reduced if environmental, social and governance goals are met.
ANZ, DBS Bank and Standard Chartered acted as senior mandated lead arrangers and joint sustainability co-ordinators and Rabobank as the mandated lead arranger. Standard Chartered was appointed as the facility agent.
The interest margin on the facility is correlated to the achievement of certain improvement targets that have been identified as part of Olam’s sustainability strategy. If those targets are met, the interest margin could be lower than conventional loans.
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