Olam International plans to issue S$125 million and S$25 million in subordinated perpetual securities, with an issue price of 100.25 percent of the principal amount and an initial distribution rate of 5.375 percent, according to a filing to SGX.
The first call date and every five years after the first call date the distribution rate will be reset at the equivalent to the swap offer rate (SOR) plus the initial spread of 4.807 percent plus the step-up margin of 2.0 percent, the filing said.
The net proceeds from the issuance will be used for debt refinancing and/or other purposes, the filing said.
The S$125 million notes will be issued as the series 021 tranche 004 securities and the S$25 million notes will be issued as the series 021 tranche 005 securities, the filing said. Both issuances will be consolidated to form a single series with the existing S$250 million subordinated perpetual securities issued 18 January 2021, the existing S$100 million subordinated perpetual securities issued 26 April 2021 and the S$50 million securities issued 6 July 2012 under the EMTN program, the filing said.
HSBC’s Singapore branch is the sole manager for the issuance.