Agribusiness giant Olam has clinched a US$550mn revolving credit facility for its food, feed and fibre subsidiary Olam Agri.

Olam Global Agri and Olam Global Agri Treasury are borrowers on the deal, which has a tenor of three years. It will be used for general corporate purposes and to refinance existing loans.

The senior mandated lead arrangers for the facility are Deutsche Bank, Crédit Agricole, JP Morgan, Rabobank, Santander. HSBC is the facility agent.

The facility is guaranteed by Singapore-headquartered parent company Olam Group, but will switch to Olam Agri when a planned demerger of the business, first announced in 2022, is completed.

After the demerger, Olam Agri will be concurrently listed in Singapore and Saudi Arabia. The Saudi Agricultural and Livestock Company bought a US$1.24bn stake in the company in 2022.

Earlier this year Olam Agri, which originates and trades soft commodities, closed a separate US$625mn shariah-compliant facility led by a trio of banks from the United Arab Emirates.

Another Olam entity, Olam Food Ingredients, in March joined the wave of commodity-focused firms arranging financing backed by export credit agencies (ECAs), closing a US$500mn loan from Citi and SMBC, backed by Sace, Italy’s ECA.