In line with its move towards sustainable financing, food and agri-business operator Olam has just issued a JPY 5.5 billion ($68 million) five-year sustainability-linked transaction.
These Senior Notes due 2026 is the company’s second sustainability-linked issuance and will be privately placed under its US$5.0 billion Euro Medium Term Note Programme.
See: Former Unilever CEO and chair appointed as chair of Olam Food Ingredients
Olam’s first sustainability-linked transaction in Asia (ex-Japan) was a JPY 7.0 billion issuance last December.
Issued at a fixed rate of 1.403% which will be payable semi-annually in arrears, the Notes have a tiered, one-time step-down adjustment to the coupon rate which is linked to the company’s achievement of the agreed Sustainability Performance Targets (SPTs).
These SPTs are structured to reflect Olam’s work towards advancing: prosperous farmers and food systems, thriving communities and the regeneration of the living world.
Proceeds from the Notes will be used by the group for working capital and general corporate purposes, including financing capital expenditure and potential acquisition opportunities – which the group may pursue down the road as part of its strategic objectives.
For more stories about where the money flows, click here for our Capital section
The Australia and New Zealand Banking Group acted as the sole manager, sustainability structuring advisor and swap dealer of the transaction.
Shares in Olam International closed up a cent or 0.571% at $1.76 on Sep 30, before the announcement.
Cover image: Olam International
