Olam continues Purpose-driven financing momentum with US$1,450 million loan linked to AtSource® sustainability platform
Leading global food and agri-business Olam International Limited (“Olam’’) has successfully secured a unique multi-tier AtSource-linked financing facility aggregating US$1,450 million (the “Facility”).
AtSource is Olam’s revolutionary and award-winning sustainability insights platform for agricultural supply chains. It provides customers with a single view across their supply chain sustainability parameters*, as well as with insights into how they can effect positive change within the ecosystem and create value for all.
N Muthukumar, Managing Director and Group CFO of Olam, said:
“We are proud to continue the momentum to pioneer Purpose-driven financing at Olam. This unique Facility links the financing to procurement done via our proprietary AtSource sustainability platform which in-turn catalyses responsible data-and insights-driven growth with our customers. I am delighted with the strong endorsement and support from our banking partners for this facility.”
Roel Van Poppel, CEO of AtSource, said:
“AtSource was created to anticipate growing consumer demand for transparency, traceability and provenance of their goods. As the data provides demonstrably clear social and environmental impact, AtSource allows both Olam and its customers to drive meaningful change for farmers, communities and ecosystems. This in turn allows us collectively to deepen trust and confidence with consumers to create greater business value.”
Proceeds from this Facility will be used to procure various agricultural raw materials under the Company’s proprietary AtSource platform. The latest Facility complements Olam’s existing sustainability-driven financing efforts†.
Olam’s wholly-owned subsidiary, Olam Treasury Pte. Ltd. (“OTPL”), is a co-borrower in the Facility. The two-tier Facility consists of a multi-year revolving credit facility (“RCF”) of US$950 million and a 3-year term loan facility of US$500 million. The RCF is further split into 3 tranches – a one year tranche of US$190 million, a 2-year tranche of US$380 million and a 3-year tranche of US$380 million.
The Facility saw participation from a large and diverse group of 18 lenders:
Senior Mandated Lead Arrangers:
- Barclays Bank Plc.
- Citibank N.A.
- Credit Agricole Corporate & Investment Bank
- DBS Bank Ltd. (DBS)
- Deutsche Bank AG
- JP Morgan Chase Bank N.A.
- Maybank (Malayan Banking Berhad)
- Standard Chartered Bank (SCB)
- The Hongkong And Shanghai Banking Corporation Limited (HSBC)
Mandated Lead Arrangers:
- Australia And New Zealand Banking Group Limited
- BNP Paribas
- Scotiabank (BNS Asia Ltd.)
- Banco Bilbao Vizcaya Argentaria S.A.
- Intesa Sanpaolo S.p.A.
- MUFG Bank Ltd.
- National Australia Bank Limited
- Rabobank (Cöoperatieve Rabobank U.A)
DBS, SCB and HSBC are joint AtSource program co-ordinators for the Facility and HSBC has been appointed as the facility agent.
* AtSource actively monitors 9 core sustainability topics related to 12 SDG’s, across our network of smallholder farmers, Olam owned estates and farms, on 6 continents.
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