Singapore’s Olam Agri secures US$2b for parent’s reorganisation

SINGAPORE’S Olam Agri has secured a US$2 billion bridge financing facility to support the reorganisation plan of its parent, Olam Group, the grains and animal feed trader said on Monday (Dec 5).

Agri-business giant Olam Group announced its reorganisation plan in January 2020 to categorise its products under two operating businesses, with an intention to potentially spin out each unit and list them separately.

It has since secured multiple loans including a US$2.9 billion facility in August for refinancing its existing loans.

The 18-month bridge loan facility may also be used for general corporate purposes, Olam Agri said.

“This transaction gives Olam Agri significant financial flexibility while Olam Group continues on its reorganisation pathway,” said Olam Group CFO N Muthukumar.

In August, Olam Group posted a marginal rise in net profit for the first half of fiscal 2022, as a weak performance in its food ingredients unit partially countered strength in the Olam Agri business. REUTERS