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Olam secures US$525 million sustainability-linked loan
OLAM International, together with its wholly owned subsidiary Olam Treasury, has secured a US$525 million revolving credit facility linked to meeting sustainability key performance indicators (KPI).
ANZ, BNS and Rabobank have been appointed as senior mandated lead arrangers, while six banks – Banco Bilbao Vizcaya Argentina, DBS Bank, Santander, Barclays Bank, HSBC and Standard Chartered Bank – are appointed mandated lead arrangers. Rabobank and HSBC have been appointed as the sustainability co-ordinator and facility agent respectively.
The facility consists of three tranches: a one-year revolving credit facility (RCF) of US$315 million, a two-year RCF of US$105 million and a three-year RCF of US$105 million.
Under the facility, Olam has identified specific KPIs that are aligned with the three purpose outcomes of the company’s sustainability strategy. They include prosperous farmers and food systems, thriving communities, and the regeneration of the living world.
The interest margin on the facility is linked with the achievement of the KPI improvement targets, which will be tracked and reported by Olam’s corporate responsibility & sustainability team. Ernst & Young will independently assess the achievement scores by performing agreed-upon-procedures that have been approved by the banks.
Proceeds from the facility will be applied towards the refinancing of existing loans of Olam and its subsidiaries.
Olam’s group chief operating officer A Shekhar said: “This facility, following on from last year’s US$500 million sustainability-linked loan, is another demonstration of how we are embedding sustainability into all aspects of our business and financing strategy.”