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Olam International secures US$250m sustainability-linked loan
MAINBOARD-LISTED agri-business group Olam International has secured a US$250 million sustainability-linked loan, with interest margins tied to key performance indicators (KPIs).
The revolving-credit facility announced on Thursday involves a one-year tranche of US$50 million, a two-year tranche of US$100 million and a three-year tranche of US$100 million.
This is the third such loan for Olam, after a US$525 million revolving-credit facility last year and a US$500 million club loan the year before that. Proceeds will be used for general corporate purposes.
ANZ, DBS and Standard Chartered (StanChart) are the senior mandated lead arrangers and joint sustainability co-ordinators for the credit facility, while Rabobank is the mandated lead arranger. StanChart is also the facility agent.
The KPIs for the latest credit facility, which will be independently assessed by Ernst & Young, involve Olam’s support of farmers and food systems, communities and the environment.
Olam managing director and chief financial officer N. Muthukumar, said in a statement that the loan “is another step towards diversification of our funding mix”.
Olam shares closed down by S$0.01, or 0.69 per cent, to S$1.45 on Thursday, before the news.