Global food and agribusiness Olam International and its wholly-owned subsidiary Olam Treasury have secured a US$1.5bn multi-tranche revolving credit facility (RCF).
The facility consists of three tranches – a US$610mn 364-day RCF, a US$457.5mn two-year RCF and a US$457.5mn three-year RCF.
The proceeds of the facility will be used for the refinancing of existing debt.
The lender group includes four senior mandated lead arrangers (MLAs): ABN Amro, HSBC, NAB and SMBC, and 15 MLAs: ANZ, BNP Paribas, BNS Asia, CBA, DBS Bank, Emirates NBD, ING Bank, Hang Seng Bank, JP Morgan, Mizuho Bank, MUFG Bank, Natixis, Standard Chartered, UniCredit and Westpac. HSBC is also the facility agent.
Jayant Parande, Olam’s president and global head of treasury and investor relations, says the refinancing is an “integral part of our ongoing efforts to proactively manage our capital structure”.
The facility comes hot on the heels of a sustainability club loan worth US$525mn that Olam inked earlier this month. The pricing on that loan, also an RCF, will be reduced if it meets certain environmental, social and governance performance criteria. It was the second such deal for Olam, which last year closed Asia’s first sustainable club loan.
Earlier this year, the commodity trading giant landed what it says was the world’s first digital-linked loan, worth US$350mn. Much like with green loans, the pricing of the RCF is dependent on Olam meeting certain digital improvement targets.
Monitoring Olam’s progress in this regard is independent company the Boston Consulting Group, which will review pre-set digital performance targets each year, using its proprietary ‘digital acceleration index’ methodology. This assesses Olam across four digital building blocks: business strategy driven by digital; digitising the core; new digital growth; and enablers. In practice, these building blocks entail digitisation of all business aspects, across operations, support functions and customer offering.