Olam Food Ingredients (ofi) has secured a two-year revolving credit facility of US$250 million ($335.2 million) with DBS Bank and the Industrial and Commercial Bank of China (ICBC).
Ofi was created in early 2020 following Olam’s re-organisation.
Olam Treasury is the borrower of the facility, which is initially guaranteed by the Olam Group. The guarantee will be transferred to ofi after its planned initial public offering (IPO) and the demerger of ofi.
Ofi was intended to be demerged by Olam via an IPO in the 2QFY2022. The IPO will see ofi primarily listed on the London Stock Exchange with a secondary listing on the Singapore Exchange (SGX) at the same time. However, the IPO was postponed due to the negative market conditions on the back of the Russia-Ukraine war.
In a separate briefing, Olam’s co-founder and group CEO Sunny Verghese said that ofi’s IPO could potentially take about two years.
Proceeds from the facility will go towards the refinancing of ofi’s existing loans and for general corporate purposes.
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DBS has been appointed as the facility agent.
Shares in the Olam Group closed 3 cents higher or 2.06% up at $1.49 on Jan 3.
