THE food ingredients unit of Olam Group : VC2 0%, OFI, has secured a multi-tranche sustainability-linked facility worth US$1.8 billion to refinance its existing loans and for general corporate purposes. 

The facility comprises a two-year and three-year revolving credit facility as well as a three-year term loan.

Its interest margin is linked to the achievement of certain sustainability targets and could be reduced if those targets are met, said Olam Group on Thursday (Aug 31).

The facility is initially guaranteed by Olam Group, which will transfer to OFI Group following OFI’s planned initial public offering and demerger from Olam. A total of 19 banks from Australia, Canada, China, Europe, Japan, US, the Middle East and Singapore participated in the facility across four tiers.

Joint sustainability coordinators and senior mandated lead arrangers include DBS and JPMorgan Chase, while Standard Chartered and BNP Paribas were among the transaction’s appointed senior mandated lead arrangers.

Mandated lead arrangers comprise ANZ and Intesa Sanpaolo, and lead arrangers include Barclays and MUFG. HSBC was appointed as the facility agent.

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Rishi Kalra, OFI’s executive director and group chief financial officer, said that the facility complements OFI’s strong liquidity position, sustainability efforts and its “growth strategy to deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix to customers across the globe”.

With the release of Olam’s first-half financials, chief executive Sunny Verghese on Aug 11 said that the group expects its planned dual listing – on the Singapore Exchange and the Saudi Exchange – of Olam Agri to take place in H1 2024.