Olam secures US$1.45b loan linked to its supply chain platform
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Janice Heng
AGRI-BUSINESS firm Olam International has secured a US$1.45 billion loan linked to its AtSource agricultural supply chain platform, the mainboard-listed firm said in a Singapore Exchange filing on Wednesday night.
Proceeds from this facility will be used to procure agricultural raw materials under AtSource, a "sustainability insights platform" which gives customers a view of their supply chain sustainability parameters.
"This unique facility links the financing to procurement done via our proprietary AtSource sustainability platform which in turn catalyses responsible data-and insights-driven growth with our customers," said Olam managing director and group chief executive officer N Muthukumar.
Olam's wholly-owned unit Olam Treasury Pte Ltd is a co-borrower in the two-tier facility, which consists of a US$950 million multi-year revolving credit facility and a US$500 million three-year term loan facility.
The revolving credit facility is further split into three tranches: a one-year tranche of US$190 million, a two-year tranche of US$380 million, and a three-year tranche of US$380 million.
The facility saw participation from 18 lenders, including DBS, Standard Chartered Bank, and HSBC, which are joint AtSource programme co-ordinators for the facility. HSBC has been appointed as the facility agent.
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Olam shares closed down S$0.04 or 2.27 per cent at S$1.72 on Wednesday before the news.
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