Leading food and global agri-business Olam International Limited has recently secured a revolving sustainability-linked credit facility aggregating US$250 million that is linked to meeting key sustainability performance indicators (KPIs).
The Singapore-based agribusiness will receive the capital in three tranches:
• A one-year credit facility ($50 million)
• A two-year credit facility ($100 million)
• A three-year credit facility ($100 million)
However, the lenders’ identity was not disclosed.
Olam’s Managing Director and Group CFO, N Muthukumar, said: “This sustainability KPI linked facility is another step towards diversification of our funding mix by partnering with quality lenders who believe that Olam, as a leading force in the agricultural sector, is able to move the global sustainability agenda forward even in these challenging and uncertain times.”
Under the Facility, Olam has identified specific KPIs that are aligned with the three purpose outcomes of the Company’s sustainability strategy:
1) Prosperous Farmers and Food Systems
2) Thriving Communities
3) Regeneration of the Living World
Olam’s Corporate Responsibility & Sustainability team would track and report the KPIs, while Ernst & Young will independently assess the achievement of the KPIs.
This is the third such facility secured by the firm after the US$525 million sustainability KPI-linked RCF in 2019 and Asia’s first sustainability-linked club loan of US$500 million in 2018.
Headquartered in Singapore, Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to more than 25,000 customers worldwide.