Olam bags $724.26m sustainability-linked loan

Proceeds will be used to refinance the company’s existing loans.

Olam International and its subsidiary Olam Treasury, have secured a revolving credit facility (RCF) of $724.26m (US$525m), with interest margin linked to meeting improvement targets for sustainability Key Performance Indicators (KPI), according to a news release.

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Proceeds from the facility will be used for the refinancing of the company’s and its subsidiaries’ existing loans.

The loan consists of tranches of $434.56m (US$315m) for one year, $144.85m (US$105m) for two years, and another $144.85m for three years.

The KPIs they identified to achieve are named Prosperous Farmers and Food Systems, Thriving Communities, and Regeneration of the Living World.

Ernst & Young will assess their achievement scores.