ofi secures inaugural $1,975m sustainability-linked loan

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An ofi cocoa farmer tries out some new equipment. Pic: ofi

olam food ingredients ('ofi'), a global leader in food & beverage ingredients and includes the company’s cocoa division, has announced that it has secured a multi-tranche sustainability-linked facility aggregating $1,975m

ofi was created in early 2020 following the announcement of the re-organisation within Olam International Limited (now Olam Group Limited 'Olam Group') to ‘unlock and maximize its long-term value’.

Rishi Kalra, Executive Director and Group CFO of ofi said: “At ofi, sustainability is at the heart our operations. This Facility is fully aligned with ofi’s growth strategy to deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix, to customers across the globe.”

ofi is a leading supplier of cocoa beans and cocoa ingredients (cocoa powder, cocoa butter and cocoa liquor) and ranks among the top three processors worldwide.

The Facility has Olam Holdings BV as a Borrower. The Facility is initially guaranteed by Olam Group which will transfer to ofi Group Limited post the planned IPO and demerger of ofi.

Proceeds from the Facility will be applied towards refinancing of ofi’s existing loans and for general corporate purposes. The facility comprises a two and three-year Revolving Credit Facility (“RCF”) and a three-year term loan. The interest margin on the Facility is linked to the achievement of sustainability targets across Environmental, Social and Governance areas and could reduce if those targets are met.

A total of 19 banks from Australia, Canada, Europe, Japan, Middle East, Singapore and the United States participated in the Facility across 4 tiers and HSBC has been appointed as the Facility agent.