OLAM Group’s indirect 64.6 per cent-owned subsidiary, Olam Agri, has secured a loan facility of US$550 million (S$743.7 million), said the group on Tuesday (Jun 25).
The revolving credit facility, which has a tenor of three years, was obtained by Olam Agri’s subsidiaries, Olam Global Agri and Olam Global Agri Treasury.
The group noted that the facility was initially guaranteed by Olam Group but it will be transferred to Olam Agri after the pair demerge.
Proceeds from the facility will be used to refinance Olam Agri’s existing loans and for general corporate purposes, it added.
HSBC has been appointed the facility agent.
Shares of Olam were up 0.9 per cent or S$0.01 at S$1.15 as at the midday break on Tuesday, before the group’s latest announcement.
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