Press Release

    Olam International Prices Debut Unrated us250 Million 10 Year Senior Unsecured Bonds Issue

    Press release
    • Debut US Dollar denominated bond issuance by Olam International Limited (“Olam”)
    • Olam believes this is the first ever unrated offering of US dollar denominated bonds by a Singapore issuer in the international bonds market

    The Board of Directors of Olam is pleased to announce that it has launched and priced an issue (the “Offering”) of Senior Unsecured Bonds (the “Bonds”) to raise US$250 million.

    The debut issue provides a new source of financing for Olam in the international bond markets. The Bonds have a maturity of 10-years which provides Olam with long term financing, enabling it to further term out its debt maturity profile. The Bonds were priced at par and bear a coupon of 7.5% in line with the pricing guidance.

    This fund-raising exercise is in line with Olam’s long-term corporate strategy to enhance its presence across the upstream and midstream elements of the agribusiness value chain. The net proceeds of the Offering will be used for general corporate purposes including capital expenditure and to finance potential acquisitions opportunities which Olam may pursue in the future as part of its strategic objectives. 

    The Joint Lead Managers and Bookrunners for the Offering were HSBC and J.P. Morgan. The orderbook was oversubscribed with participation from more than 80 investors. In terms of geographical distribution the allocation was 79% and 21% to Asian and European investors, respectively. In terms of investor classes, 46% of the allocation was to private banks, 33% to fund managers, 19% to other banks and 2% to others.

    K. Ravikumar, Olam’s Chief Financial Officer said, “We are pleased with our debut international bond offering, and particularly satisfied with the 10-year maturity period of our first issuance. We are encouraged by the response from investors in terms of geographical spread of the allocations as well as the participation from various investor classes.”

    Note:

    This release should be read and understood only in conjunction with the full text of Olam International Limited’s announcements lodged on SGXNET on 7 August 2010 on the same subject.

    About Olam International Limited

    Olam International is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, sourcing 20 products with a direct presence in 64 countries and supplying them to over 10,600 customers. With direct sourcing and processing in most major producing countries for its various products, Olam has built a global leadership position in many of its businesses, including cocoa, coffee, cashew, sesame, rice, cotton and wood products. Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam currently ranks among the top 40 largest listed companies in Singapore in terms of market capitalisation and is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index. Olam is the only Singapore firm to be named in the 2009 Forbes Asia Fabulous 50, an annual list of 50 big-cap and most profitable firms in the region. It is also the first and only Singapore company to be named in the 2009 lists for the Global Top Companies for Leaders and the Top Companies for Leaders in the Asia Pacific region by Hewitt Associates, the RBL Group and Fortune. More information on Olam can be found at www.olamgroup.com.

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