ofi secures US$2.1B loan facility to refinance debt, fund growth

SINGAPORE – Olam Group’s wholly owned subsidiary, olam food ingredients (“ofi”), has successfully secured a US$2.1 billion financing package split into different parts (multi-tranche), including a revolving credit line and a term loan. 

The funds will be used to refinance existing loans and for general corporate purposes, supporting ofi’s global food and beverage ingredients business ahead of its planned Initial Public Offering (IPO) and demerger.

The facility, which has Olam Treasury Pte Ltd as borrower, is initially guaranteed by Olam Group and will be transferred to ofi Group Limited once the planned reorganisation is completed. 

It consists of a two-year revolving credit facility and a three-year term loan, giving the company flexibility in managing its capital needs.

A syndicate of 18 international banks participated, reflecting strong lender confidence in ofi’s business model and prospects. HSBC will serve as the Facility Agent.

Senior Mandated Lead Arrangers include Banco Bilbao Vizcaya Argentaria, Citibank, DBS Bank, MUFG Bank, Standard Chartered Bank (Singapore), and The Hongkong and Shanghai Banking Corporation.

Mandated Lead Arrangers are Agricultural Bank of China, Australia and New Zealand Banking Group, Banco Santander, BNP Paribas, Commonwealth Bank of Australia, Emirates NBD Capital, JPMorgan Chase Bank, Mizuho Bank, National Australia Bank, Natixis, Societe Generale, and The Bank of Nova Scotia.

ofi, which operates across cocoa, coffee, dairy, nuts, spices, and other ingredient platforms, is a major supplier to food and beverage companies worldwide. The business has been focusing on building a more integrated, solutions-led model while preparing for its public listing.

The new financing follows recent moves by Olam Group to simplify its structure and unlock shareholder value, including a planned sale of its Olam Agri unit to Saudi Agricultural & Livestock Investment Company (SALIC) and a commitment to strengthen ofi’s balance sheet.

The multi-tranche facility is expected to enhance ofi’s financial flexibility as it continues to grow its customer-centric portfolio, manage price volatility in key commodities such as cocoa and coffee, and pursue long-term strategic initiatives.

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