Olam Group Limited&rsquo s wholly-owned subsidiary Olam Food Ingredients (ofi) has secured a US$1.8 billion ($2.44 billion) multi-tranche revolving credit facility and term loan, announced the company on June 26. 

 

The facility comprises a two-year and three-year revolving credit facility and a three-year term loan. Proceeds from the facility will be applied towards refinancing of ofi&rsquo s existing loans and general corporate purposes. 

 

A total of 17 banks participated in the facility across three tiers. The senior mandated lead arrangers are Citibank, DBS Bank, JPMorgan Chase Bank N.A, MUFG Bank, Natixis and the Hong Kong and Shanghai Banking Corporation (HSBC).

 

HSBC has been appointed as the facility agent.

 

The facility is initially guaranteed by Olam Group VC2 0.00% Limited, which will transfer to ofi following the planned IPO and demerger of ofi.

 

In August 2021, Olam announced that ofi intends to seek a primary listing on the premium segment of the London Stock Exchange, and a concurrent secondary listing in Singapore.

 

In August 2023, the group said it aimed to complete the IPO of Olam Agri, its agribusiness operating unit, by 1H2024, and the IPO of ofi would only proceed after Olam Agri goes public.

 

Ofi secured US$500 million in a separate facility back in March. The export credit agency-backed facility, comprising a five-year US$250 million tranche and a seven-year 37.38 billion yen tranche ($320 million), was backed by Italian export credit agency SACE.

 

Olam Agri announced on June 25 that it had secured a US$550 million revolving credit facility with a tenor of three years. 

Proceeds from the facility will be used to refinance Olam Agri&rsquo s existing loans and for general corporate purposes

 

OLAM Group : VC2 +0.88%&rsquo s indirect 64.6 per cent-owned subsidiary, Olam Agri, has secured a loan facility of US$550 million, said the group on Tuesday (Jun 25).

 

The revolving credit facility, which has a tenor of three years, was obtained by Olam Agri&rsquo s subsidiaries, Olam Global Agri and Olam Global Agri Treasury.

 

Proceeds from the facility will be used to refinance Olam Agri&rsquo s existing loans and for general corporate purposes, said the group.

 

It also noted that the facility was initially guaranteed by Olam Group but it will be transferred to Olam Agri, following Olam Agri&rsquo s planned initial public offering (IPO) and demerger from Olam.

 

In 2020, Olam announced a reorganisation of its business to create two new operating groups, namely Olam Food Ingredients and Olam Global Agri. It also disclosed its plans to maximise long-term shareholder value via carve-out and capital-raising options, including the IPO of the two units on a sequential basis.

 

In January 2023, Olam said it planned to dual list Olam Agri in Singapore and Saudi Arabia, and demerge the agribusiness in the first half of the same year.

 

But in May 2023, the group said that it did not expect the listing to be completed in the first half of 2023 as initially planned due to delays in approval processes.

 

Last August, Olam said it aimed to complete the IPO of Olam Agri by the first half of 2024.

 

Senior mandated lead arrangers comprise Deutsche Bank, JP Morgan Chase Bank NA, Cooperative Rabobank UA, Banco Santander and Credit Agricole Corporate and Investment Bank. HSBC was appointed as the facility agent.