SINGAPORE – Leading global food and agri-business Olam International Limited (“Olam’’) has secured one of Singapore’s first club loans (the “Facility”) referencing the USD Secured Overnight Financing Rate (SOFR*) with DBS and Industrial and Commercial Bank of China, Singapore Branch (ICBC Singapore).
The Facility size is US$150 million and has a 1-year tenor with Olam Treasury Pte. Ltd. as a co-borrower. Proceeds from the Facility will be used for general corporate purposes of Olam and its subsidiaries.
The Facility agreement also allows for the carve-out, separation, and proposed demerger and IPO of ofi as per Olam’s re-organisation plan.
N Muthukumar, Group CFO of Olam, said: “We are delighted to continue our partnership with DBS and ICBC to explore financing solutions that aid us in the transition to alternative risk-free benchmark rates ahead of the impending discontinuation of LIBOR.”
This Facility follows on from Singapore’s first club loan pegged to the Singapore Overnight Rate Average (SORA) which was completed in September 2020 with DBS and ICBC Singapore.
* The Secured Overnight Financing Rate, or SOFR, has been identified by the Alternative Reference Rates Committee, a group of private-market participants convened by the Federal Reserve Board and the New York Fed, as the recommended alternative to USD LIBOR.
