Olam secures US$4B to finance ongoing re-organisation plan  

SINGAPORE – Leading global food and agri-business, Olam International Limited has secured multiple bank facilities amounting to US$4.0 billion, as it continues to progress on its Re-organisation Plan.  

The facilities comprise a US$1.5 billion committed facility with a flexible tenor of up to 3 years (“Facility A”), a US$1.0 billion working capital facility (“Facility B”) and an US$1.5 billion total increase across the 2 bridge loan facilities announced in August 2021 (“Facility C”). 

The singapore headquartered company said that the funds will be used to facilitate the allocation of existing debt to the new operating groups.  

The new operating groups were created in early 2020 following the announcement of the reorganization of Olam to unlock and maximize its long-term value. 

 OFI intends to seek a primary listing on the premium segment of the London Stock Exchange, and a concurrent secondary listing in Singapore in H1 2022.   

Olam’s Group CFO and CEO (Operations), N Muthukumar said: “The signing of these facilities is yet another milestone in our Re-organisation plan to unlock value for our stakeholders.  

These facilities offer us additional flexibility to allocate financing in-line with the capital structure for our three operating groups.”  

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Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to 17,300 customers worldwide. 

The group is comprised of Olam Food Ingredients (“OFI”), Olam Global Agri (“OGA”) and Olam International (“OIL”) operating groups. 

The Facility A and C agreements include provisions that allow Olam to allocate the facilities to OFI, OGA, OIL operating groups post the carve-out, separation, demerger, and IPO of OFI as per the Re-organisation Plan. 

 The Facility B agreement, on the other hand, has OGA and its treasury entity as co-borrowers.  

Australia & New Zealand Banking Group, Standard Chartered Bank (“SCB”), and The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) were the Senior Mandated Lead Arrangers for Facility A.  

HSBC and SCB were also the arrangers for Facility B, while BNP Paribas, Credit Suisse, DBS Bank, Mizuho Bank and Rabobank joined as additional lenders in Facility C. 

Olam unit prices US$275m US private placement 

Earlier, OLAM Americas, a wholly-owned subsidiary of Olam International priced a US$275 million private placement of 5 and 7-year fixed-rate notes. 

The issuance comprises US$200 million of 5-year fixed rate notes, priced at a coupon of 3.05 percent, and US$75 million of 7-year fixed rate notes, priced at 3.25 per cent. 

Olam expects the transaction will close on Feb 16, 2022, with proceeds from the issue being used by Olam Americas and its US affiliates for general corporate purposes.  

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