Olam International prices US$300 million fixed rate senior notes due 2023
Olam International Limited (“Olam”), a leading agri-business operating across the value chain in 70 countries, announced that it has priced a benchmark US$300 million issuance of senior notes due 2023 (the “Notes”) under its US$5,000,000,000 Euro Medium Term Note Programme.
The Notes were issued at 99.37 of their principal amount and priced at a fixed coupon of 4.375% following an intraday book-building exercise which attracted diverse participation with over 70 investors placing orders, resulting in an oversubscribed order book.
In addition to demand from private banking accounts, the Notes also saw strong participation from institutional investors such as fund managers and banks, which collectively were allocated 26% of the issuance. In terms of geographical distribution, approximately 22% was allocated to European investors, with the remainder allocated to Asian investors.
This transaction is in line with Olam’s strategy of actively managing its debt portfolio to balance the twin objectives of tenor extension and cost optimisation.
Jayant Parande, Olam’s Group Treasurer said: “This issuance has a unique tenor of 5 year and 10 months that helped extend our debt maturity into 2023, while still pricing within our secondary trading levels. The issue was well subscribed with diverse participation from both institutional investors and private banks that resulted in an oversubscribed order book.”
The joint lead managers and joint bookrunners for the Notes were Credit Suisse (Singapore) Limited, DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Ltd. and Standard Chartered Bank.
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 March 2, 2017 on the same subject.