Olam Agri takes out US$2.9b Poseidon Principles facility to refinance loans

OLAM Group’s food, feed and fibre operating business Olam Agri has obtained a US$2.9 billion facility with a 3-year tenor to refinance its existing loans, and for general corporate purposes.

The loan is based on Poseidon Principles, a framework for integrating climate considerations into lending decisions to promote international shipping’s decarbonisation.

In a press statement on Wednesday (Aug 24), Olam Agri said the facility saw participation from a “large and diverse group” of 16 lenders including DBS, MUFG Bank and Natixis - who also served as joint Poseidon Principles programme co-ordinators for the facility.

HSBC was appointed the facility agent.

The facility is guaranteed by Olam Group : VC2 0% with Olam Agri subsidiaries, Olam Global Agri and Olam Global Agri Treasury, as co-borrowers.

“We are encouraged by the strong endorsement and support from our banking partners for this facility,” said N Muthukumar, group chief financial officer of Olam Group as well as chief executive officer of operations at Olam Agri.

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“This facility is closely aligned with Olam Agri’s purpose of transforming food, feed and fibre for a more sustainable future and strengthens our resolve to improve carbon management in our freight business”.

Shares of Olam ended Tuesday S$0.01 or 0.7 per cent lower at S$1.48.