Olam Agri, the food, feed and fibre operating arm of SGX-listed Olam Group has secured a US$2.9 billion ($4.05 billion) facility based on Poseidon Principles.
The Poseidon Principles are a global framework that incorporates green considerations for responsible ship finance.
The facility has Olam Agri subsidiaries Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd. as co-borrowers with a tenor of three years and guaranteed by the Olam Group.
Proceeds from the facility will go towards the refinancing of Olam Agri’s existing loans and for general corporate purposes.
The facility saw participation from a total of 16 lenders including BNP Paribas, Citigroup, DBS Bank, JP Morgan and HSBC Bank.
N Muthukumar, group CFO of Olam Group and CEO of operations at Olam Agri says, “At Olam Agri, we hold ourselves accountable by embedding international environmental, social and governance (ESG) standards and best practices in our operations.”
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“This facility is closely aligned with Olam Agri’s purpose of transforming food, feed and fibre for a more sustainable future and strengthens our resolve to improve carbon management in our freight business. We are encouraged by the strong endorsement and support from our banking partners for this facility,” he adds.
Shares in Olam Group closed at $1.48 on Aug 23.
