Project detail - Olam Global Agri Pte. Ltd

Who is our prospective customer?

Our prospective client is Olam Global Agri Pte Ltd ("Olam Agri") and its subsidiary Olam Global Agri Treasury Pte Ltd ("Olam Agri Treasury"). Olam Agri is a leading global agribusiness focused on the origination, processing, and merchandising of various agricultural commodities, including grains, oilseeds, rice, edible oils, animal feed, protein, cotton, wood products, and rubber. It operates in over 35 countries and serves more than 10,000 customers worldwide. Olam Agri Treasury is responsible for securing and centralizing Olam Agri's financings.

What is our funding objective?

The funding objective is to provide a USD 100 million senior unsecured 5-year bilateral term loan to Olam Global Agri Pte Ltd and Olam Global Agri Treasury Pte Ltd. The proceeds from this loan will be used to finance Olam Agri's working capital requirements for rice trade flows from Thailand, India, and Vietnam to various African countries, including Ivory Coast, Cameroon, Mozambique, Ghana, Liberia, and Senegal.

Why do we want to fund this investment?

The investment in Olam Agri is driven by the company's alignment with strategic goals in the agri-commodities sector, enhancing portfolio diversification and providing stable income. This funding supports food security in African countries, strengthens Olam Agri's sustainability practices, and mobilizes additional resources from risk participation partners, contributing to broader economic development and environmental goals. Additionally, the transaction qualifies for the "Reducing Inequalities" (RI) label as it enhances access to staple foods in lower-middle and low-income African countries, helping to ease food price inflation and support vulnerable populations.

What is the Environmental and Social categorization rationale?

This considers E&S category B+ exposure due to the potential adverse environmental and social (E&S) risks and impacts associated with the business activities, that can be addressed through relevant mitigation measures. Key E&S issues are specifically related to the rice supply chain, next to the processing assets under operational control, and cover e.g. labour and working conditions (PS-2), biodiversity (PS-6), environmental pollution and resource efficiency (PS-3), occupational and community health and safety (PS-2/4) and community relations and stakeholder engagement (PS-1). Adequate E&S capacity and a management system are part of the key mitigants, next to the rice-related sustainability initiatives.