February 23, 2012 – Olam International Limited (“Olam” or “the Company”), a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, had on 20 February 2012 announced the proposed issue of Singapore dollar denominated Perpetual Capital Securities (the “Capital Securities”). The Board of Directors of Olam is pleased to announce that it has launched and priced the issue of Capital Securities to raise S$275 million (the “Offering”).
The Capital Securities will constitute direct, unconditional, unsecured and subordinated obligations of Olam, and there is no maturity date for the Capital Securities. The Capital Securities were priced at par and bear a distribution rate of 7.0% for the first ten years in line with the pricing guidance. The distribution rate will then be reset at the end of ten years from the issue date of the Capital Securities. Additionally, Olam may choose to redeem in whole the Capital Securities on or after the fifth anniversary of the issuance of the Capital Securities.
This fund-raising exercise is in line with Olam’s long-term corporate strategy to strengthen its supply chain core and enhance its presence across the upstream and midstream elements of the agribusiness value chain. The net proceeds of the Offering will be used for general corporate purposes, refinancing existing borrowings, working capital requirements as well as to finance capital expenditure and the expansion of its supply chain management business.
The Joint Lead Managers and Joint Bookrunners for the Offering were DBS Bank Ltd. J.P. Morgan (S.E.A.) Limited and UBS AG, Singapore Branch. The order book was oversubscribed with participation from more than 40 investors. In terms of geographical distribution, the allocation was primarily to Singapore based investors. In terms of investor classes, a substantial portion of the allocation was to private banks, with sizeable interest from institutional investors and asset managers.
Krishnan Ravikumar, Olam’s Group Chief Financial Officer said, “We are pleased with the success of our debut Perpetual Capital Securities offering, as it enables us to diversify our sources of funding whilst extending the debt maturity profile. We are also encouraged by the strong response and continued patronage of Olam by a broad spectrum of investors.”
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