Press Release

Singapore 

Olam Group Limited ("Olam Group") today announced that its wholly owned operating group, olam food ingredients ("ofi"), has successfully completed the issuance of US$300 million of Perpetual Hybrid Capital Instruments ("HCIs"), representing ofi's inaugural hybrid capital transaction and marking the first syndicated bank-funded hybrid capital issuance in the food and beverage sector. 

Rishi Kalra, Executive Director and Group CFO of ofi said:
“This transaction represents an important step in ofi’s capital management strategy. It broadens our access to long-term capital, diversifies our funding sources and strengthens our capital structure. The issuance also establishes an additional financing platform to support the business’s long-term funding requirements and growth objectives.”

The HCIs were issued by ofi Treasury B.V. (“OTBV”) and subscribed for by Melati Designated Activity Company (“Melati”), a third-party special purpose investment vehicle funded through committed bank facilities. OTBV retains the option to voluntarily redeem the HCI at any time, while Olam Group and Olam International Limited, a wholly owned subsidiary within ofi, have granted certain option rights to Melati that require them to purchase the HCIs from Melati upon the occurrence of specified put events.

Proceeds from the issuance will be used by ofi to refinance existing indebtedness and for general corporate purposes. The issuance is not expected to lead to any material impact in debt or gearing for ofi or the Olam Group.

The transaction was arranged by the following Mandated Lead Arrangers: 

1. Société Générale

2. Emirates NBD Capital Limited

3. Standard Chartered Bank (Singapore) Limited

4. Crédit Agricole Corporate and Investment Bank, Singapore Branch

Société Générale, London Branch, acted as Facility Agent for the transaction.