Olam obtains world’s first digital-score tied loan of US$350 million

Singapore two-dollar bills

Olam International said on Monday it obtained a first-of-its-kind US$350 million revolving credit facility which ties the pricing to the agri-business player’s “digital maturity score.”

“Olam and the participating banks have agreed on annual improvement targets over the course of the facility which, if achieved, would trigger a reduction in the interest rate,” the company said in a filing to SGX after the market closed on Monday.

The digital maturity score is a proprietary index from the Boston Consulting Group, which assesses four categories: Business strategy driven by digital, digitizing the core, new digital growth and enablers, the filing said.

“This financing can be a good template to drive the agriculture sector’s digital transformation and is another example of Olam’s commitment towards our purpose of Re-imagining Global Agriculture and Food Systems,” A Shekhar, Olam’s executive director and group chief operating officer, said in the statement.

Facility proceeds will be used to refinance existing loans, Olam said.

Olam said seven banks have been appointed as mandated lead arrangers, and they will participate in the facility equally: Banco Bilbao Vizcaya Argentaria’s (BBVA) Singapore Branch, DBS Bank, First Abu Dhabi Bank P.J.S.C. Singapore Branch, JPMorgan Chase Bank, Mizuho Bank, Natixis Singapore Branch and Standard Chartered Bank. BBVA is the digital coordinator and facility agent, the filing said.

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