Commodity trading giant Olam has signed a term loan facility in the Japanese market, worth ¥30bn (US$265mn).
There are two tranches to the facility, a ¥20.7bn three-year tranche and a ¥9.3bn five-year tranche, both of which are guaranteed by the trader.
The funds will help refinance Olam’s existing debt – this is the second term loan facility it has taken out in Japan via its wholly-owned subsidiary, Olam Treasury.
MUFG Bank, Mizuho and the Development Bank of Japan acted as mandated lead arrangers and bookrunners, with Mizuho also acting as facility agent. The facility was subsequently syndicated into the Japanese market, with 12 banks and institutions joining the ticket.
GTR understands that Joyo Bank, Shinsei Bank, Nishi-Nippon City Bank and Higashi-Nippon Bank are among the Japanese lenders, however the other banks’ names remain undisclosed.
“We are extremely pleased to have completed our second samurai loan facility in the Japanese market. The transaction is in line with our strategic objectives of lender diversification and tenor extension at competitive pricing levels. We would like to thank the lead arrangers and bookrunners as well as all the participating banks for their strong support for this transaction,” says Jayant Parande, group head of treasury at Olam.
The agri-commodities company is a regular visitor to Asia’s debt markets and this year has expanded its funding base through the use of sustainability-linked loans out of Singapore.
In March, it worked with 15 lenders to complete Asia’s first sustainability-linked revolving credit facility, the pricing of which will be reduced if it meets certain performance criteria.
The US$500mn facility followed numerous other debt restructuring deals Olam conducted with European banks, whereby existing loans are eligible for price reduction, should the company meet sustainability targets.