Olam secures US$1b in funding

Agri-business Olam International has secured a revolving credit and term loan facility amounting to about US$1 billion (S$1.4 billion).
Agri-business Olam International has secured a revolving credit and term loan facility amounting to about US$1 billion (S$1.4 billion). PHOTO: OLAM INTERNATIONAL

SINGAPORE - Agri-business Olam International has secured a revolving credit and term loan facility amounting to about US$1 billion (S$1.4 billion).

The Temasek-backed firm announced early on Wednesday morning (Oct 28) that the new loans will be used to refinance debt and help meet its working capital and general corporate funding needs.

The facility consists of two tranches - a US$850 million 364-day revolving credit facility and a US$150 million five-year term loan.

"This refinancing is a part of our proactive capital management strategy of diversifying our debt portfolio and achieving an optimum mix of tenor and overall borrowing cost," said Mr A Shekhar, the company's executive director of finance and business development.

Olam's latest fund-raising exercise follows its acquisition of ADM's global cocoa business at an enterprise value of US$1.2 billion on a cash free and debt free basis.

In August, Japanese trading house Mitsubishi Corporation had announced it will buy a 20 percent stake in Olam across two deals worth S$1.53 billion.

The stock was up one cent or 0.5 per cent at $2.01 as at 10.50am on Wednesday.