Singapore-headquartered agribusiness and commodities giant Olam International has secured US$5.2bn in financing across three loan facilities, as it presses ahead with a major operational overhaul.

Olam announced this week it had secured a US$1.2bn three-year term loan to support general corporate activities, as well as two 18-month bridge loans of US$2bn each to facilitate the company’s reorganisation.

Citibank, JP Morgan, HSBC and MUFG are senior mandated lead arrangers for the facilities, with HSBC also acting as facility agent. The three facilities are guaranteed by Olam.

“This landmark transaction gives us significant flexibility to allocate financing across our three new operating groups as part of our reorganisation plan,” says Neelamani Muthukumar, Olam’s group CFO. “We thank our banking partners for their strong commitment and support.”

The Singapore-listed company’s structural overhaul was devised after a strategic review in 2019 and aims to unlock long-term growth potential.

It includes spinning off its cocoa, coffee, edible nuts, spices and dairy business into a separate entity, Olam Food Ingredients (OFI), which the company plans to list publicly by the first half of 2022.

It also plans to move its grains, animal feed, edible oils, rice, cotton and commodity finance business to another entity, Olam Global Agri (OGA), which targets high-growth Asian and African countries.

The company said in February it was still exploring strategic options for the latter entity, but that separation and carve-out of OFI and OGA should be complete by the end of the year.

The term loan and one bridge loan facility include OFI entities as borrowers, while OGA and Olam International are co-borrowers on the second bridge loan.

The transactions mark a continued ramping up of Olam’s financing levels, having secured multi-tranche revolving credit facilities of around US$1.5bn in 2018 and 2019.

The company has also turned to sustainability-linked financing, sealing a US$250mn revolving credit facility from ANZ, DBS Bank, Standard Chartered and Rabobank in June 2020 where pricing is reduced in line with green key performance indicators.