Leading global food and agri-business, Olam International Limited (“Olam’’) announced 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 an 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 groups.
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.”
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.
