Wilmar, DBS Bank ink first agribusiness loan pegged to Sora
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Agri-food giant Wilmar International has taken out a $200 million loan pegged to the Singapore Overnight Rate Average (Sora) from DBS Bank.
At the start of each interest period, Wilmar will also have the option to enter into a Sora interest rate swap.
This is the Singapore agribusiness industry's first Sora loan.
The interest rate comprises a compounded daily Sora rate calculated in arrears and an applicable margin.
The new loan and the interest-rate swap are in line with the country's road map for the development of new Sora-based markets.
Ms Tan Su Shan, DBS' group head of institutional banking, said the loan "builds momentum" to facilitate transition towards adopting Sora as the new interest rate benchmark for the Singapore dollar cash and derivatives markets.
"Forward-looking companies like Wilmar are positioning themselves for the future by tapping Sora financing early," she added.
Wilmar chief financial officer Charles Loo said the loan will put the company "in good stead to ride the wave of interest rate reforms, and drive better understanding and greater adoption of risk-free rates in general, which are more stable and robust".
Wilmar shares closed up 1.84 per cent at $4.43 yesterday.
THE BUSINESS TIMES
