Olam secures US$1.85 billion loan

The first tranche is a US$1.6 billion conventional loan, while the remaining US$250 million will be issued as an Islamic loan

Agribusiness giant Olam has secured a US$1.85 billion loan for general corporate purposes, said the company on Friday (May 30) via a bourse filing.

The loan, which was taken by Olam Agri – the company’s food, feed and fibre operating group – has a three-year tenor and will be disbursed in two tranches.

The first tranche is a US$1.6 billion conventional loan, while the remaining US$250 million will be issued as an Islamic loan.

For the conventional tranche, the lead arrangers are ANZ, BBVA, BNP Paribas, ING, Intesa Sanpaolo, Natixis, as well as First Abu Dhabi. These are the banks responsible for arranging and syndicating the loan.

HSBC is the conventional tranche’s facility agent, which is responsible for managing the loan’s day-to-day activities and the relationships between the borrower and lenders.

For the Islamic tranche, the lead arranger and investment agent is Dubai Islamic Bank.

Shares of Olam rose 1.1 per cent, or S$0.01, to close at S$0.90 on Friday.

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