SINGAPORE — Olam International and its wholly owned subsidiary, Olam Treasury Pte. Ltd., have secured a US$525 million revolving credit facility linked to meeting sustainability key performance indicators (KPI).

The credit facility will support Olam’s sustainability strategy through integrating three specific KPI goals; prosperous farmers and food systems, thriving communities and regeneration of the living world.

“Sustainability has always been at the heart of Olam’s business,” said A Shekhar, chief operating officer of Olam.

“This facility, following on from last year’s $500 million sustainability-linked loan, is another demonstration of how we are embedding sustainability into all aspects of our business and financing strategy.

“In turn, this will enable us to tackle the many challenges facing our sector and fulfil our purpose to Re-imagine Global Agriculture and Food Systems.”

The credit facility consists of three parts: a one year evolving credit facility (RCF) of US$315 million, two year RCF of US$105 million and a three year RCF of US$105 million.

The interest margin on the facility is linked with the achievement of the KPI improvement targets. The KPIs will be tracked and reported by Olam’s Corporate Responsibility & Sustainability team.

Ernst & Young will independently assess the achievement scores by performing agreed-upon-procedures that have been approved by the banks, the company said.

Olam has appointed three banks — ANZ, BNS and Rabobank as Senior Mandated Lead Arrangers.

The company has also appointed Banco Bilbao Vizcaya Argentina, S.A., DBS Bank Ltd., Santander, Barclays Bank, HSBC and Standard Chartered Bank as Mandated Lead Arrangers.

Rabobank and HSBC have been appointed as the sustainability coordinator and facility agent respectively.

“I would like to thank our banking partners for their support for this transaction and we will continue to explore further opportunities in the green and sustainability financing space,” Shekar said.

The company said that proceeds from the loan will be applied toward the refinancing of existing loans of Olam and its subsidiaries.