Finance

ofi secures $1,750m sustainability-linked loan

By Anthony Myers

- Last updated on GMT

Olam Group Limited has guaranteed the sustainability loan to its ofi division. Pic: Olam Group
Olam Group Limited has guaranteed the sustainability loan to its ofi division. Pic: Olam Group

Related tags ofi Cocoa Olam

The Olam Group Limited has announced that its wholly owned subsidiary, olam food ingredients (ofi), which includes its cocoa division, has secured a multi-tranche sustainability-linked facility aggregating $1,750 million.

In a statement the Group said the facility has Olam Treasury Pte Ltd as a borrower and the facility is initially guaranteed by Olam Group Limited, which will transfer to ofi Group Limited following a planned IPO and demerger of ofi.

Earlier this year, the Singapore-based agri business reported Operational PATMI (profit after tax and minority interest) of S$184.0 million ($136 million) and said a proposed listing in London, with a concurrent listing in Singapore, is expected to take place after Olam Agri IPO on a sequential basis.

Proceeds from the facility will be applied towards refinancing of ofi’s existing loans and general corporate purposes. The facility comprises a two-year and three-year Revolving Credit Facility (RCF) and a three-year term loan.

Olam said the interest margin on the facility is linked to the achievement of certain sustainability targets and could reduce if those targets are met.

Rishi Kalra, Executive Director and Group CFO of ofi said: “At ofi, sustainability is at the heart of our operations. This Facility complements our strong liquidity position, sustainability efforts and our growth strategy to deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix to customers across the globe​.”

A total of 19 banks from Australia, Canada, China, Europe, Japan, Middle East, Singapore and the United States participated in the facility and HSBC has been appointed as the facility agent.

Related topics Commodities Cocoa Sustainability

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