Singapore’s Olam secures $500 million sustainability-linked revolver

By Marisa Wong

Morgantown, W.Va., March 26 – Olam International Ltd. announced it has secured a $500 million three-year sustainability-linked revolving credit facility.

This is Asia’s first sustainability-linked club loan, according to a press release. Multiple banks issued the loan together and in collaboration with the borrower to achieve sustainability targets.

Under the credit facility, Olam has committed to meet improvement targets for a range of environmental, social and governance metrics as assessed by Sustainalytics. The metrics are tested annually, and if the preset targets are achieved, the interest rate on the facility will be reduced.

Olam appointed 15 banks to provide the facility in equal parts: ABN Amro Bank, NV, Singapore Branch, Australia and New Zealand Banking Group Ltd., MUFG, BNP Paribas (Singapore Branch), Commerzbank AG, Singapore Branch, Commonwealth Bank of Australia, Singapore Branch, DBS Bank Ltd., Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch, ING Bank NV Singapore Branch, Mizuho Bank, Ltd., National Australia Bank Ltd., Natixis, Singapore Branch, Rabobank International, Standard Chartered Bank and UniCredit Bank AG, Singapore Branch as mandated lead arrangers for the facility.

ING Bank is the sustainability coordinator, and BNP Paribas is the facility agent.

Wholly owned subsidiary Olam Treasury Pte. Ltd. is a co-borrower.

“We are proud to be the first company in Asia and the agri-sector to secure a sustainability-linked medium term club loan that links interest rate on the loan to achieving clear sustainability targets,” chief executive officer Sunny Verghese said in the release.

Olam is a food processing company based in Singapore.

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