Olam International opens SGD debt markets in 2021 with S$250 million subordinated perpetual securities
Global food and agri-business Olam International Limited (“Olam”) announced that it has priced a benchmark S$250 million of subordinated perpetual securities (the “Securities”) under its US$5 billion Euro Medium Term Note Programme.
N Muthukumar, Managing Director and Group CFO of Olam, said:
“This issuance marks Olam’s return to the public capital markets for subordinated perpetual securities since 2017. The issue was well subscribed, leading to a final distribution rate of 5.375%, which was tightened from an initial pricing guidance of 5.50%.”
The Securities will constitute direct, unconditional, unsecured and subordinated obligations of Olam, and there is no maturity date for the Securities. The issuance was successfully priced at par following an intraday book-building exercise and bear a distribution rate of 5.375% for the first five and a half years. The distribution rate will then be reset and subject to a step-up margin at the end of five and a half years from the issue date of the Securities and each date falling every five years thereafter. Additionally, Olam may choose to redeem in whole the Securities on each distribution payment date falling on or after the five and a half year anniversary of the issuance of the Securities.
The joint lead managers for the Securities were Credit Suisse (Singapore) Limited, DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch and Standard Chartered Bank (Singapore) Limited.
Net proceeds from the issuance will be used by Olam for working capital purposes and general corporate purposes, including financing capital expenditure, repayment of existing debt and potential acquisition opportunities which Olam and/or its subsidiaries may pursue in the future as part of its strategic objectives.
Note: This release should be read and understood only in conjunction with the full text of Olam International Limited’s announcement lodged on SGXNET on January 12, 2021 on the same subject.
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES
This press release is not for distribution, directly or indirectly, in or into the United States. This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States.
The Securities may not be offered, sold or delivered in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the applicable state securities laws. There will be no public offer of securities in the United States.