SINGAPORE – Leading global food and agri-business, Olam International (“Olam’’), announced yesterday that its wholly owned subsidiary, Olam Treasury Pte Ltd (“OTPL”), has secured a medium-term samurai loan facility (the “Facility”) aggregating JPY 25 billion in the Japanese market. A samurai loans allow non-Japanese firms to tap into the investment capital available in Japan and borrow funds in yen.
N Muthukumar, Managing Director and Group CFO of Olam said: “We are extremely pleased to return to the Japanese loan market with our third Samurai Facility since 2017. Such facilities are a key part of our financing strategy as they help to diversify our funding mix and extend our loan tenor. I would like to thank the four lead arrangers and bookrunners for their support.”
The Facility consists of two tranches: (i) a 3-year tranche of JPY 18.75 billion, and (ii) a 5-year tranche of JPY 6.25 billion, guaranteed by Olam. Proceeds from the Facility will be applied towards refinancing of OTPL’s existing loans and general corporate purposes.
MUFG Bank Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation (Singapore Branch) and Development Bank of Japan Inc. acted as Mandated Lead Arrangers and Bookrunners (MLABs) for the Facility, with Mizuho Bank Ltd. acting as Facility Agent. The Facility will be syndicated by the MLABs in the Japanese loan market.