Olam International Limited has secured a US$150 million ($205 million) club loan referencing the USD Secured Overnight Financing Rate (SOFR) with DBS and Industrial and Commercial Bank of China, Singapore Branch (ICBC Singapore).
The facility has a one-year tenor with Olam Treasury as a co-borrower. Proceeds from the facility will be used for general corporate purposes of Olam and its subsidiaries.
The facility agreement also allows for the carve-out, separation, and proposed demerger and IPO of ofi as per Olam’s re-organisation plan.
“We are delighted to continue our partnership with DBS and ICBC to explore financing solutions that aid us in the transition to alternative risk-free benchmark rates ahead of the impending discontinuation of LIBOR,” says N Muthukumar, Olam’s group CFO.
This facility follows on from Singapore’s first club loan pegged to the Singapore Overnight Rate Average (SORA) which was completed in September 2020 with DBS and ICBC Singapore.
Shares in Olam International closed down 1 cent or 0.58% lower at $1.71 on Dec 6.
