Olam International Limited Prices US$500 Million 5-Year Senior Notes Under Its Euro Medium Term Note Programme
The Offering was successfully priced following an intra-day bookbuilding exercise, and attracted diverse participation with 130 investors placing orders, resulting in an oversubscribed orderbook totaling US$1.6 billion. In addition to demand from private banking accounts, the Offering also saw strong participation from institutional investors such as fund managers and banks, which collectively were allocated 30% of the Offering. In terms of geographical distribution, approximately 81% was allocated to Asian investors, with the remainder allocated to European investors.
The Offering was priced at a final coupon of 5.75%, well within initial guidance in the region of 6%, reflecting the quality and strength of the order book.
This transaction is in line with Olam’s long-term funding strategy of diversifying its funding sources, and of accessing the capital markets in a flexible and efficient manner.
The Joint Lead Managers and Joint Bookrunners for the Offering were Credit Suisse (Singapore) Limited, The Hongkong and Shanghai Banking Corporation Limited, J.P. Morgan (S.E.A.) Limited, and UBS AG, Singapore Branch.
Shekhar Anantharaman, Olam’s Executive Director – Finance & Business Development said: “This marks one of our largest USD bond issue to date and our first issuance in the USD bond market since August 2010. We are pleased to have captured a strong market window with this benchmark issuance, which was executed as a swift drawdown under our EMTN Programme. We are also encouraged by the strong response and the broad participation by both institutional investors and private banks.”