SINGAPORE – olam food ingredients (“ofi”), a global leader in naturally good food & beverage ingredients, has secured a multi-tranche sustainability-linked facility aggregating US$1,975 million (the “Facility”). ofi was created in early 2020 following the announcement of the re-organisation within Olam International Limited (now Olam Group Limited “Olam Group”) to unlock and maximize its long-term value.
Rishi Kalra, Executive Director and Group CFO of ofi said: “At ofi, sustainability is at the heart our operations. This Facility is fully aligned with ofi’s growth strategy to deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix, to customers across the globe.”
The Facility has Olam Holdings B.V. as a Borrower. The Facility is initially guaranteed by Olam Group which will transfer to ofi Group Limited post the planned IPO and demerger of ofi.
Proceeds from the Facility will be applied towards refinancing of ofi’s existing loans and for general corporate purposes. The facility comprises a 2 and 3 year Revolving Credit Facility (“RCF”) and a 3-year term loan. The interest margin on the Facility is linked to the achievement of sustainability targets across Environmental, Social and Governance areas and could reduce if those targets are met.
A total of 19 banks from Australia, Canada, Europe, Japan, Middle East, Singapore and the United States participated in the Facility across 4 tiers:
Joint Sustainability Coordinators & Senior Mandated Lead Arrangers
1. Australia And New Zealand Banking Group Limited (“ANZ”)
2. Banco Bilbao Vizcaya Argentaria, S.A (“BBVA”)
3. DBS Bank Ltd.
4. Mizuho Bank, Ltd
6. Banco Santander, S.A.
7. Sumitomo Mitsui Banking Corporation (“SMBC”)
Senior Mandated Lead Arrangers
8. Abu Dhabi Commercial Bank P.J.S.C. (“ADCB”)
9. BNP Paribas
10. The Hongkong And Shanghai Banking Corporation Limited (“HSBC”)
11. MUFG Bank Ltd
12. Standard Chartered Bank
13. Unicredit Bank AG
Mandated Lead Arranger
14. BNS Asia Limited (“Scotiabank”)
15. Barclays Bank PLC
17. Commonwealth Bank of Australia
18. Erste Group Bank AG
19. Westpac Banking Corporation
HSBC has been appointed as the Facility agent.
olam food ingredients (“ofi”) is a new operating group born out of Olam. ofi offers sustainable, natural, value-added food products and ingredients so that consumers can enjoy the healthy and indulgent products they love. It consists of industry-leading businesses of cocoa, coffee, dairy, nuts, and spices. ofi has built a unique global value chain presence including its own farming operations, farm-gate origination, and manufacturing facilities. ofi partners with customers, leveraging its complementary and differentiated portfolio of ‘on-trend’ food products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that’s traceable and sustainable.