Olam Agri, the food, feed and fibre operating group of Olam Group, has secured a financing facility of AED 2.74 billion ($1.03 billion) from banks in the United Arab Emirates (UAE).
The facility, which is guaranteed by the Olam Group, will see Olam Agri’s subsidiaries, Olam Global Agri and Olam Global Agri Treasury being co-borrowers with a tenor of two and a half years.
Proceeds from the facility will be applied towards the refinancing of Olam Agri’s existing loans for general corporate purposes.
N Muthukumar, group CFO of Olam Group and CEO of operations at Olam Agri says, “Olam Agri’s successful inaugural AED term facility builds upon its increasing activity in the Gulf Cooperation Council region, and further diversifies our funding mix.”
Abu Dhabi Commercial Bank, First Abu Dhabi Bank (FAB) and Standard Chartered Bank are the senior mandated lead arrangers for the facility, while Emirates NBD Bank is the mandated lead arranger. FAB is the facility agent.
As at 12.44pm, shares in Olam Group are trading 2 cents lower or 1.28% down at $1.54.
