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Overview

ICBC contributes to SGD 200 million revolving credit facility to Olam for general corporate purposes

Commitments (Constant USD, 2023)$74,763,320
Commitment Year•2020Country of Activity•SingaporeDirect Recipient Country of Incorporation•SingaporeOverseas Jurisdiction•SingaporeSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 28, 2020
Last repayment (originally scheduled)
Sep 28, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • DBS Bank Ltd.

Receiving agencies

Private Sector

  • Olam Treasury Pte. Ltd. (OTPL)

Loan description

ICBC contributes to SGD 200 million 2020 revolving credit facility for general corporate purposes with Olam

Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On September 28, 2020, ICBC (Singapore branch) and DBS Bank agreed to terms on a SGD 200 million one-year revolving credit facility with Olam Treasury Pte. Ltd. (OTPL), a wholly-owned subsidiary of Olam International Limited, a food and agri-business corporation. The loan's interest is comprised of the Singapore Overnight Rate Average (SORA) plus an added, unknown margin. The loan is the first club loan in Singapore to be pegged to SORA. Including in the credit facility is an option for a cross-currency swap, in which Olam can enter into a SORA cross-currency swap with DBS Bank at the beginning of each interest period to swap SGD proceeds into USD. The loan will be used by Olam for general corporate purposes. DBS and ICBC have been appointed Mandated Lead Arrangers and DBS is the Sole Bookrunner and Facility Agent for the agreement.

Staff comments

1. The individual contributions by ICBC and DBS to the loan are unclear, therefore AidData has assumed an equal contribution of SGD 100 million from each lender. 2. AidData is unable to ascertain the margin added to the SORA rate for this particular loan, nor how the SORA rate for this particular loan was calculated. More information on the Singapore Overnight Rate Average is available here: https://www.mas.gov.sg/monetary-policy/sora 3. AidData cannot estimate the interest rate because the applicable margin is unknown.