Olam Agri Secures $1.85 Billion Financing Amid Strategic Expansion

Singapore-based agribusiness Olam Agri has secured a $1.85 billion dual-tranche financing facility, comprising a $1.6 billion conventional loan and a $250 million Islamic tranche. The three-year facility is intended to support the company's operational and strategic initiatives.

The financing arrangement involves Olam Agri subsidiaries, Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd., as borrowers for the respective tranches. Initially guaranteed by Olam Group, the facility's guarantee will transition to Olam Agri upon its demerger. Proceeds from the facility are earmarked for general corporate purposes.

The conventional tranche's senior mandated lead arrangers include Australia and New Zealand Banking Group Limited, Banco Bilbao Vizcaya Argentaria, BNP Paribas, ING Bank, Intesa Sanpaolo Bank, and Natixis, with First Abu Dhabi Bank serving as a mandated lead arranger. HSBC acts as the facility agent for this tranche. For the Islamic tranche, Dubai Islamic Bank is the senior mandated lead arranger and investment agent.

This financing follows the acquisition of a 44.58% stake in Olam Agri by the Saudi Agricultural and Livestock Investment Company for $1.78 billion, valuing Olam Agri at approximately $4 billion. SALIC, a wholly owned subsidiary of Saudi Arabia's Public Investment Fund , previously acquired a 35% stake in Olam Agri for $1.2 billion in November 2024. SALIC holds a call option to purchase the remaining 20% stake within three years, potentially leading to full ownership.

Olam Agri, a subsidiary of Olam Group, operates across various segments, including grains, oilseeds, rice, edible oils, and cotton, with a significant presence in emerging markets. The company reported trading volumes of 39.6 million metric tonnes in 2023. Olam Agri's strategic focus includes transforming food, feed, and fibre for a sustainable future, aiming to create value for customers and enable farming communities to prosper.

The company's planned dual listing in Singapore and Saudi Arabia, initially announced in August 2023 for the first half of 2024, has been delayed due to regulatory processes. The listing is part of Olam Group's strategy to unlock value and focus on its remaining businesses, including Olam Food Ingredients , which is also considering an initial public offering.