Olam secures 25b yen medium-term samurai loan facility
MAINBOARD-LISTED agri-business group Olam International's wholly-owned unit, Olam Treasury, has secured a medium-term samurai loan facility aggregating 25 billion yen (S$324.2 million) in the Japanese market.
The facility, guaranteed by Olam, involves a three-year tranche of 18.75 billion yen, and a five-year tranche of 6.25 billion yen, the company said in a bourse filing on Wednesday.
Proceeds from the facility will be applied towards refinancing of its subsidiary's existing loans and for general corporate purposes, it added.
Olam managing director and chief financial officer N. Muthukumar, said in a statement that such facilities "are a key part of (Olam's) financing strategy as they help to diversify its funding mix and extend its loan tenor".
"We are extremely pleased to return to the Japanese loan market with our third samurai facility since 2017," he said. (Samurai loans are yen loans issued in Japan by foreigners.)
MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation (Singapore) and the Development Bank of Japan are the mandated lead arrangers and bookrunners (MLABs) for the facility, and Mizuho Bank is its facility agent.
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The facility will be syndicated by the MLABs in the Japanese loan market.
Olam shares closed down one Singapore cent, or 0.72 per cent to S$1.380 on Wednesday, before the news.
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