SINGAPORE – Olam International Limited (“Olam’’) announced on Tuesday that it has signed a 5-year US$175.0 million loan agreement with IFC, a member of the World Bank Group, to finance its permanent working capital and capital expenditure requirements for four food processing facilities in Nigeria and India.
The financing will support the Hemarus sugar mill and spice processing facilities in India, as well as the sesame hulling and Crown Flour Mill facilities in Nigeria. These facilities help generate rural employment and provide market opportunities for smallholder farmers to sell their crops, thereby improving the livelihoods of local communities in the region.
Olam’s Group CFO, N. Muthukumar said: “This latest investment strengthens our partnership with IFC. These food processing facilities, located in India and Nigeria, help generate local employment and provide a ready buyer at market prices for farmers in the communities. Olam’s focus on inclusive growth, enabling economic prosperity and social and environmental sustainability in developing nations, is a perfect fit with IFC’s mandate.”
IFC’s Director of Manufacturing Agribusiness and Services, Alzbeta Klein said, “We are pleased to support Olam’s strategy of enhancing value for stakeholders by investing in long- term midstream processing assets that build on the core soft commodity supply chain. Through this investment by IFC, Olam will continue to support small-holder farmers in India and Nigeria, who supply commodities to its processing facilities.”
