Olam takes borrowing to US$1.62bn with US$400m RCF

News | 2 August 2017

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Olam International has completed a US$400m revolving credit facility (RCF).

The RCF is made up of a 364-day facility worth US$160m, a two-year facility worth US$120m, and a three-year facility worth US$120m – all three tranches are revolving.

Olam International will use proceeds from the facility to refinance its existing loans and those of its subsidiaries – Olam Treasury Pte, a wholly owned subsidiary of Olam International, is a co-borrower on the RCF.

The Singapore-based agri-business grows, processes, transports and trades over 45 commodities across 70 countries, and is one of the biggest soft commodity traders in the world.

Jayant Parande, president and global head of treasury and investor relations of Olam said, “We are pleased to have secured this refinancing which extends our debt maturity profile at a competitive cost. We would like to thank our banking partners for their strong support for this loan transaction.”

Separately, Olam Treasury Ptecompleted a JPY25bn (approximately US$222m) term loan on 17 July in the Japanese loan market.

The facility was secured to refinance existing loans and for general corporate purposes.

It was the company’s “debut Samurai loan transaction”, said Parande.

Prior to this, the company completed its first RCF in Europe with a US$1bn facility on 6 July.

The largest of the three loans is made of three tranches – a 364-day facility worth US$400m, a two-year facility worth US$300m, and a three-year facility worth US$300m.

Olam said proceeds from the facility will be used to refinance its existing syndicated and bilateral bank loans and those of its subsidiaries.

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