Olam Food Ingredients (ofi), which is part of the Olam Group, has secured a multi-tranche sustainability-linked facility totalling US$1.98 billion ($2.76 billion) on Aug 30.
The facility comprises a two- and three-year revolving credit facility (RCF) and a three-year term loan. The interest margin on the facility is linked to the achievement of sustainability targets across environmental, social and governance (ESG) areas and could reduce if those targets are met.
Olam Holdings B.V. has been listed as the borrower of the facility.
The facility itself will be initially guaranteed by the Olam Group. This will be transferred to ofi group limited following its planned initial public offering (IPO) and the demerger of ofi.
Proceeds from the facility will go towards refinancing ofi’s existing loans and for general corporate purposes.
Shares in Olam Group closed flat at $1.48 on Aug 30.
