Olam Food Ingredients secures S$665.29M financing backed by SACE

SINGAPORE: Olam Food Ingredients (ofi), a subsidiary of Olam Group, has secured its first export credit agency (ECA) linked financing worth US$500 million (S$665.29 million). 

The Edge Singapore reported that the financing package consists of two tranches: a five-year US$250 million (S$332.67 million) portion and a seven-year tranche of 37.38 billion yen (equivalent to roughly US$250 million).

Notably, the facility is supported by SACE, the Italian export credit agency, marking a strategic collaboration between ofi and Italy’s Ministry of Economy and Finance-controlled entity.

Rishi Kalra, the executive director and group CFO of ofi, expressed enthusiasm about the landmark deal, highlighting its importance in diversifying capital sources and extending debt maturity.

Mr Kalra remarked, “This transaction forms a part of our financing strategy to diversify sources of capital and extend our debt maturity. We are pleased to support SACE’s ‘Push Strategy1’ and look forward to enhancing our engagement with Italian customers and suppliers.“

The facility’s initiation will see initial backing from the Olam Group, with plans to transition the guarantee to ofi group post its intended initial public offering (IPO) and following the demerger of ofi.

The infusion of funds from this facility will serve general corporate purposes.

In facilitating this financing arrangement, Sumitomo Mitsui Banking Corporation (SMBC) played a pivotal role as a mandated lead arranger and bookrunner, while Citibank contributed as a mandated lead arranger.

Additionally, SMBC was entrusted with the responsibilities of coordinator and facility agent. /TISG

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