OLAM International will be issuing S$400 million worth of 4 per cent fixed rate senior unsecured notes due 2026 at par value, the agri-food giant said in a bourse filing on Tuesday.

 

The notes will be issued under Olam' s US$5 billion euro medium term note programme established in 2012. 

 

The notes are expected to be issued on Aug 24, 2020 and mature on Feb 24, 2026.

 

Proceeds will be used by the group for debt refinancing and general corporate purposes.

 

Olam managing director and group chief financial officer N Muthukumar said the notes issue " marks Olam&rsquo s first return to the public capital markets since 2017" .

 

He added that the issue was " well subscribed on the back of strong investor demand and is Olam&rsquo s lowest ever coupon for a Singapore-dollar benchmark size transaction&rdquo .

 

" The issuance tenor of five years and six months helped extend our debt maturity into 2026, while still pricing within our secondary trading levels," Mr Muthukumar added.

 

The joint lead managers for the transaction were Australia and New Zealand Banking Group Credit Suisse (Singapore) DBS Bank The Hongkong and Shanghai Banking Corporation, Singapore Branch and Standard Chartered Bank (Singapore).