Olam unit receives US$1.98b sustainability-linked loan

Olam unit secures loan from 19-bank consortium.

Olam Group's agri-business subsidiary, olam food ingredients, has obtained a US$1.98b ($2.77b) multi-tranche sustainability-linked facility from a consortium of 19 banks.

According to a regulatory filing, the facility consists of a two and three-year revolving credit facility and a three-year term loan and is initially guaranteed by Olam Group. The facility will be transferred to olam food ingredients after its planned IPO and demerger from the group. Proceeds will then be used for the refinancing of olam food ingredient's existing loans and for general corporate purposes.

Olam Holdings B.V. will act as the borrower of the facility, the interest margin of which is linked to the achievement of sustainability targets across Environmental, Social and Governance areas.

1 SGD = 0.72 USD