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 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.