Olam seeks to raise US$188m from Singapore’s debt market even as it extends its food prize application deadline
SINGAPORE – Global food and agri-business company, Olam International Limited has announced that it has priced a benchmark S$250 million (about US$188.7 million) of subordinated perpetual securities under its US$5 billion Euro Medium Term Note Programme.
This is the first time in three years that the global agribusiness company is issuing subordinated perpetual securities.
The last issuance of a similar kind was made in 2017. Olam says the issue was well subscribed, leading to a final distribution rate of 5.375%, which was tightened from an initial pricing guidance of 5.50%.
According to a statement from Olam, the Securities will constitute direct, unconditional, unsecured and subordinated obligations of Olam, and there is no maturity date for the Securities.
Olam says that following issuance, it may choose to redeem in whole the Securities on each distribution payment date falling on or after the five-and-a-half-year anniversary of the issuance of the Securities.
The company said that it will use the net proceeds from the issuance to bolster its working capital purposes.
Part of the proceeds will also be used to fund general corporate purposes, including financing capital expenditure, repayment of existing debt and potential acquisition opportunities which Olam and/or its subsidiaries may pursue in the future as part of its strategic objectives.
Food prize application deadline extended
Meanwhile, Olam has extended the application deadline for its bi-annual innovation prize to March 15, 2021.
The company which one of the world’s leading food and agri-business company, cited the challenges of COVID-19 and the desire to encourage participation as reason for the extension.
The Olam Prize for Innovation in Food Security is awarded in partnership with Agropolis Foundation, which brings together over 40 member institutions, public authorities, and civil society actors for dialogue and interaction on agriculture, food and environment research.
The winner will receive a US$75,000 grant to scale the innovation.
Kamesh Ellajosyula, Chief Innovation Officer for Olam Food Ingredients said: “Olam is on a journey to reimagine global agriculture and food systems, and the Olam Prize recognises scientists who are helping to lead the way.”
“We want to give the greatest number of innovators the opportunity to participate in the programme.”
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