Press Release

Singapore

Leading global agri-business, Olam International Limited (“Olam’’) and its wholly owned subsidiary, Olam Treasury Pte. Ltd. (“OTPL”), have secured a revolving credit facility (the “Facility”) aggregating US$525.0 million linked to meeting sustainability Key Performance Indicators (“KPI”).  

The Facility consists of three tranches – a 1-year revolving credit facility (“RCF”) of US$315.0 million, a 2-year RCF of US$105.0 million and a 3-year RCF of US$105.0 million.

Under the Facility, Olam has identified specific KPIs that are aligned with the three purpose outcomes of the Company’s sustainability strategy: 

1. Prosperous Farmers and Food Systems,
2. Thriving Communities, and
3. Regeneration of the Living World

The interest margin on the Facility is linked with the achievement of the KPI improvement targets. The KPIs 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.

Olam’s Group Chief Operating Officer, A Shekhar, said: “Sustainability has always been at the heart of Olam’s business. 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. In turn, this will enable us to tackle the many challenges facing our sector and fulfil our purpose to Re-imagine Global Agriculture and Food Systems. 

“I would like to thank our banking partners for their support for this transaction and we will continue to explore further opportunities in the green and sustainability financing space.” 

Olam has appointed 3 banks - ANZ, BNS and Rabobank as Senior Mandated Lead Arrangers and 6 banks - Banco Bilbao Vizcaya Argentina, S.A. (“BBVA”), DBS Bank Ltd., Santander, Barclays Bank, HSBC and Standard Chartered Bank as Mandated Lead Arrangers. Rabobank and HSBC have been appointed as the sustainability co-ordinator and facility agent respectively. 

Proceeds from the Facility will be applied towards the refinancing of existing loans of Olam and its subsidiaries.