Olam secures US$232m Samurai loan facility to refinance existing loans

SINGAPORE – Olam Treasury Pte. Ltd. (OTPL), wholly owned subsidiary of global food and agri-business company, Olam International has secured 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, stated the company.

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N Muthukumar, Managing Director and Group CFO of Olam said, “We are extremely pleased to return to the Japanese loan market with our third Samurai Facility since 2017.”

“Such facilities are a key part of our financing strategy as they help to diversify our funding mix and extend our loan tenor. I would like to thank the four lead arrangers and bookrunners for their support,” he added.

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.

The funding comes days after Olam Holdings B.V., another wholly owned subsidiary of Olam International 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.

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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.

Being a leading food and agri-business supplying food, ingredients, feed and fibre, Olam has partnered with Agropolis Fondation, to search for ground-breaking scientific research that can deliver transformational impacts within global agriculture.

They are offering a USD$75,000 grant to support development and implementation of the research.

The fourth edition of the biennial Prize follows the recent warning from the UN World Food Programme that the COVID-19 pandemic will double the number of people suffering acute hunger by the end of 2020, bringing food security firmly into the world’s spotlight.

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