Singapore, September 10, 2019 – Leading global agri-business, Olam International Limited (“Olam’’) and its wholly owned subsidiary, Olam Treasury Pte. Ltd. (“OTPL”), have secured a revolving credit facility (the “Facility”) aggregating US$525.0 million linked to meeting sustainability Key Performance Indicators (“KPI”).
The Facility consists of three tranches—a 1-year revolving credit facility (“RCF”) of US$315.0 million, a 2-year RCF of US$105.0 million and a 3-year RCF of US$105.0 million
Under the Facility, Olam has identified specific KPIs that are aligned with the three purpose outcomes of the Company’s sustainability strategy:
- Prosperous Farmers and Food Systems,
- Thriving Communities, and
- Regeneration of the Living World
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.
Olam’s Group Chief Operating Officer, A Shekhar, said: “Sustainability has always been at the heart of Olam’s business. This facility, following on from last year’s US$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.
“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.”
Olam has appointed 3 banks—ANZ, BNS and Rabobank as Senior Mandated Lead Arrangers and 6 banks —Banco Bilbao Vizcaya Argentina, S.A. (“BBVA”), DBS Bank Ltd., Santander, Barclays Bank, HSBC and Standard Chartered Bank as Mandated Lead Arrangers. Rabobank and HSBC have been appointed as the sustainability co-ordinator and facility agent respectively.
Proceeds from the Facility will be applied towards the refinancing of existing loans of Olam and its subsidiaries.
About Olam International
Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to over 19,800 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 4.8 million farmers.
Through our purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam 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 currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST.
More information on Olam can be found at www.olamgroup.com.
Olam is located at 7 Straits View, Marina One East Tower, Singapore 018936. Telephone: +65 63394100, Facsimile: +65 63399755.
Issued on behalf of Olam International Limited by:
WATATAWA Consulting, 77 Robinson Road, Robinson 77 #33-00, Singapore 068896
Contacts for Olam Investor Relations
Senior Vice President
+65 66031104, 96570339
Chow Hung Hoeng
+65 63179471, 98346335
Contacts for WATATAWA Consulting
Ong Chor Hao