Olam secures a US$200 million term loan from EBRD
Global food and agri-business Olam International Limited and its wholly owned subsidiary, Olam Treasury Pte. Ltd. (“OTPL”), have secured a dual tranche financing facility (the “Facility”) aggregating US$200 million from the European Bank for Reconstruction and Development (EBRD).
The Facility consists of two tranches - a US$50 million tranche and a US$150 million tranche which will replace Olam’s existing US$150 million loan from the EBRD that is due in December 2020. The Facility has an average tenor of approximately 3.58 years.
N Muthukumar, Managing Director and Group CFO of Olam, said: “I am delighted to announce the completion of this facility that supports working capital requirements across Olam’s businesses in eastern Mediterranean, Eastern Europe and the Black Sea regions. I would like to thank the EBRD for their continuing support and commitment to Olam.
“In addition, the European Union and the TaiwanBusiness – EBRD Technical Cooperation Fund will provide donor support for the development of new methodologies and processes for climate-related risk management and stress testing in Turkey and Egypt. This work will be valuable in helping Olam to implement the recommendations of the Taskforce for Climate-related Financial Disclosure (TCFD) which can then be shared across the agri-sector in both countries.”
Natalya Zhukova, EBRD Director Agribusiness, said: “Our region has enormous potential in agribusiness and Olam plays an important role in enhancing its integration into the global trade. As part of this project, a significant number of farmers will be added to Olam’s supply chain, improving the quality of products and operational standards. We are also pleased to support the company in enhancing its corporate governance for effective climate action.”