Olam International gets $2.78 billion revolving credit facility

An undated handout photograph shows an Olam International Ltd. Commodities trader Olam International announced on May 19 that it has secured a US$2.22 billion (S$2.78 billion) revolving credit facility. -- PHOTO : OLAM INTERNATIONAL LTD
An undated handout photograph shows an Olam International Ltd. Commodities trader Olam International announced on May 19 that it has secured a US$2.22 billion (S$2.78 billion) revolving credit facility. -- PHOTO : OLAM INTERNATIONAL LTD

Commodities trader Olam International announced on May 19 that it has secured a US$2.22 billion (S$2.78 billion) revolving credit facility.

Proceeds from the facility will be used to refinance existing debt, and for its working capital and general corporate funding needs.

Various banks such as the Australia and New Zealand Banking Group (ANZ) and HSBC banks are appointed senior mandated lead arrangers, while banks such as DBS Bank and National Australia Bank are the mandated lead arrangers.

Mr A. Shekhar, Olam executive director of finance and business development, said:

"We are extremely pleased with the strong support we received for this facility from our key relationship banks. This transaction is another step forward towards optimising our balance sheet structure and borrowing mix."

He said that this improves "the balance between the tenor of our borrowings and utilisation of the funds", which will also reduce Olam's overall cost of borrowing.

He added: "We will continue to actively monitor and optimise our debt portfolio in line with our strategic plan objectives."