Olam International plans a private placement of 5.5 billion yen (around US$50 million) in 1.403 percent five-year sustainability linked notes, marking the agri-business’s second sustainability-linked offering, the company said in a filing to SGX Thursday.
“The transaction is another step in Olam’s goal towards increasing its share of sustainable financing, with the notes being its sixth sustainable financing, following the inaugural sustainability-linked notes and four loan facilities,” Olam said in the statement.
Olam said the notes feature a tiered, one-time step-down adjustment to the coupon rate linked to reaching sustainability performance targets (SPTs). The SPTs are structured on Olam’s three purpose outcomes: prosperous farmers and food systems; thriving communities; and regeneration of the living world, the filing said.
Proceeds from the offering will be used for working capital and general corporate purposes, including financing capital expenditure and potential acquisitions, Olam said.
The notes will be issued under Olam’s US$5 billion euro medium-term note program, the filing said.
The sole manager, sustainability structuring advisor and swap dealer for the transaction was ANZ, the filing said.
In December 2020, Olam had issued 7 billion yen in a sustainability-linked issuance.