Leading global food and agri-business, Olam International Limited has announced today that it has secured multiple bank facilities aggregating US$4.0 billion, as it continues to progress on its Re-organisation Plan.
The facilities comprise a US$1.5 billion committed facility with a flexible tenor of up to 3 years (“Facility A”), a US$1.0 billion working capital facility (“Facility B”), and a US$1.5 billion total increase across the 2 bridge loan facilities announced in August 2021 (“Facility C”) and will be used to facilitate the allocation of existing debt to the new operating groups1.
Olam’s Group CFO and CEO (Operations), N Muthukumar said: “The signing of these facilities is yet another milestone in our Re-organisation plan to unlock value for our stakeholders. These facilities offer us additional flexibility to allocate financing in-line with the capital structure for our three operating groups.”
Olam Secures US$4.0 Billion Of Financing Facilities As It Progresses On Re-organisation
The Facility A and Facility C agreements include provisions that allow Olam to allocate the facilities to Olam Food Ingredients (“OFI”), Olam Global Agri (“OGA”) and Olam International (“OIL”) operating groups post the carve-out, separation, demerger and IPO of OFI as per the Re-organisation Plan. The Facility B agreement has OGA and its treasury entity as co-borrowers.
Australia & New Zealand Banking Group, Standard Chartered Bank (“SCB”) and The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) were the Senior Mandated Lead Arrangers for Facility A. HSBC and SCB were also the arrangers for Facility B, while BNP Paribas, Credit Suisse, DBS Bank, Mizuho Bank and Rabobank joined as additional lenders in Facility C.
The new operating groups were created in early 2020 following the announcement of the Re-organisation of Olam to unlock and maximise its long-term value. OFI intends to seek a primary listing on the premium segment of the London Stock Exchange, and a concurrent secondary listing in Singapore in H1 2022.
