Overview

ICBC contributes to USD 150 million credit facility to Olam for general corporate purposes

Commitments (Constant USD, 2023)$69,160,623

Commitment Year•2021Country 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: Dec 7, 2021

Last repayment (originally scheduled): Dec 7, 2022

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 International Limited (Olam)
Olam Treasury Pte. Ltd. (OTPL)

Loan description

ICBC contributes to USD 150 million 2021 club loan for general corporate purposes with Olam

Interest type•Variable Interest RateLoan tenor•12-month rateMaturity•1 years

Narrative

Full Description

Project narrative

On December 7, 2021, ICBC Singapore and DBS Bank agreed to terms on a USD 150 million one-year club loan with Olam International Limited (Olam), with its wholly-owned subsidiary Olam Treasury Pte. Ltd. as a co-borrower. The loan is said to reference the USD Secured Overnight Financing Rate (SOFR), though any added margin is unclear. The loan is one of the first club loans in Singapore to follow SOFR. Proceeds from the facility will be used for general corporate purposes of Olam and its subsidiaries, with The Straits Times indicating that the proceeds could be used to help fund a proposed demerger and IPO of Olam Food Ingredients (OFI), a new operating group within Olam.

Staff comments

1. The individual contributions by ICBC and DBS to the loan are unclear, therefore AidData has assumed an equal contribution of USD 75 million from each lender. 2. AidData is unable to ascertain any additional margin added to the SOFR rate for this facility, nor has it determined the method used for calculating the SOFR rate in this instance. This issue warrants further investigation.