Olam unit gets $1.75 billion multi-tranche sustainability-linked loan

By Mary-Katherine Stinson

Lexington, Ky., Aug. 31 – Olam Group Ltd.’s new operating group, olam food ingredients (ofi), closed on a multi-tranche sustainability-linked credit facility totaling $1.75 billion with a syndicate of 19 banks participating across four tiers, according to a press release.

The facility lists Olam Treasury Pte Ltd. as borrower and is initially guaranteed by Olam Group. Later, after a planned public offering and demerger of olam food ingredients, the guarantor will be ofi Group Ltd.

The facility is comprised of two-year and three-year revolving credit facilities and a three-year term loan.

The facility’s interest margin is linked to the achievement of sustainability targets across environmental, social and governance areas and could reduce if those targets are met.

Abu Dhabi Commercial Bank PJSC, DBS Bank Ltd., JPMorgan Chase Bank NA, Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. are the joint sustainability coordinators and senior mandated lead arrangers.

Banco Bilbao Vizcaya Argentaria SA, BNP Paribas, Cooperatieve Rabobank UA, ING Bank NV, Standard Chartered Bank (Singapore) Ltd. are the senior mandated lead arrangers.

Australia and New Zealand Banking Group Ltd. and Intesa Sanpaolo SpA are the mandated lead arrangers.

Agricultural Bank of China Ltd., Barclays, Credit Agricole CIB, First Abu Dhabi Bank PJSC, MUFG Bank Ltd., National Australia Bank Ltd. and the Bank of Nova Scotia are lead arrangers.

HSBC is the facility agent.

Proceeds will be used to refinance ofi’s existing loans and for general corporate purposes.

Olam Group is a subsidiary holding company of Olam International Ltd., a Singapore-based supply chain manager and processor of agricultural products and food ingredients. ofi is a new operating group born out of Olam in early 2020 following the announcement of the reorganization within Olam International Ltd.

© 2015 Prospect News.
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