Olam Agri secures inaugural US$625 million Shariah-compliant financing facility

Olam Agri secures inaugural US$625 million Shariah-compliant financing facility

Olam Group Limited (“Olam Group”) announced today that its food, feed and fibre operating group, Olam Agri, has secured a commodity Murabaha facility (“the Facility”) from a diversified group of global investors (including UAE, Malaysia, Singapore and Hong Kong) totalling US$625 million. 

N Muthukumar, Group CFO of Olam Group and CEO of Operations at Olam Agri said: “This landmark commodity Murabaha financing further diversifies Olam Agri’s funding mix with access to a new investor pool which provides financing on the basis of Shariah principles.”  

The Facility has Olam Agri subsidiaries Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd. as purchasers with a tenor of three years. The Facility is initially guaranteed by Olam Group which will transfer to Olam Agri post the planned IPO and demerger of Olam Agri. Proceeds from the Facility will be applied towards general corporate purposes. 

Emirates NBD Capital Limited and Abu Dhabi Commercial Bank are the Global Shariah Co-ordinators for this Facility. 

Abu Dhabi Commercial Bank, Emirates NBD Bank, and First Abu Dhabi Bank (“FAB”) are the Senior Mandated Lead Arrangers for the Facility, while Citibank N.A., Credit Agricole Corporate and Investment Bank, HSBC Amanah, Mizuho Bank Ltd, MUFG Bank (Malaysia) Berhad, and Standard Chartered Bank are the Mandated Lead Arrangers. Emirates Islamic Bank is Lead Arranger and FAB is the Investment Agent. 

About Olam Agri and Olam Group 

Olam Agri is a market leading, differentiated food, feed and fibre agri-business with a global origination footprint, processing capabilities and deep understanding of market needs built over 34 years. With a strong presence in high-growth emerging markets and products across grains & oilseeds, freight, integrated feed & protein, rice, edible oils, specialty grains & seeds, sugar, cotton, wood products, rubber and risk management solutions, Olam Agri is at the heart of global food and agri-trade flows with 39.6 million MT in volume traded in 2023.

Focused on transforming food, feed and fibre for a more sustainable future, it aims at creating value for customers, enable farming communities to prosper sustainably and strive for a food-secure future. Olam Agri Holdings Limited, which holds the Olam Agri business, is a 64.6 per cent owned subsidiary of Olam Group. 35.4 per cent of Olam Agri Holdings is owned by SALIC International Investment Company, a wholly owned subsidiary of Olam Agri’s strategic partner The Saudi Agricultural and Livestock Company.

For more information and to subscribe to our news alerts, please visit https://www.olamagri.com/

Olam Group is a leading food and agri-business supplying food, ingredients, feed and fibre to 22,000 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a global network of farmers. 

Through our purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam Group aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders. 

Headquartered and listed in Singapore, Olam Group currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST. 

Since June 2020, Olam Group has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency.

More information on Olam can be found at www.olamgroup.com.

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