Olam obtains a loan linked to sustainable development | 2020-06-19
SINGAPORE – Olam International Ltd. and its wholly owned subsidiary Olam Treasure Pte. Ltd. have secured a $ 250 million sustainable development revolving credit facility linked to the achievement of sustainability performance indicators.
It consists of a one-year revolving sustainability credit facility of $ 50 million, a two-year SRCF of $ 100 million and a three-year SRCF of $ 100 million. The interest margin is linked to the achievement of sustainability KPI improvement targets and could be lower than that of comparable conventional loans, if these targets are achieved.
“This sustainability KPI facility is another step towards diversifying our funding mix by partnering with quality lenders who believe that Olam, as a leading force in the agriculture industry, is capable of advancing the global sustainability agenda even in these difficult and uncertain times “, N Muthukumar, Managing Director and CFO of the Olam Group.” This facility is the third sustainability loan that Olam has executed over the past two years. years only with the support of our banking partners and goes to the heart of our goal of reinventing agriculture and global food systems. ”
Olam has identified specific KPIs aligned with the three goals of the company’s sustainability strategy: thriving farmers and food systems, thriving communities and regeneration of the living world.
KPIs will be monitored and reported by Olam’s corporate responsibility and sustainability team. Ernst & Young will implement procedures to independently assess the achievement of the KPIs.
This is the third such installation secured by Olam. Last year, he announced a KPI-related RCF of $ 525 million and Asia’s first sustainability-related club loan of $ 500 million in 2018. Last year, he also launched the first S $ 350 million digital loan to the world.