Food ingredients giant ofi, a subsidiary of Singapore-based Olam Group, has arranged a USD 1.05 billion multi-tranche credit and term loan facility backed by 10 international lenders to refinance debt and support liquidity.
A major liquidity injection has been finalized for the global agricultural sector as Singapore-based food ingredients provider ofi closed a multi-tranche credit and term loan agreement totaling USD 1.05 billion. The financing package combines two-year and three-year revolving lines alongside a three-year term loan. HSBC serves as the facility agent, leading a consortium of ten global banking institutions including DBS Bank, Rabobank, Mizuho Bank, and JP Morgan Chase Bank.
This major capital movement serves as a vital balance sheet optimization strategy aimed at refinancing existing liabilities and supporting ongoing operational requirements. Initially guaranteed by parent company Olam Group Limited, the obligations will transition to ofi Group Limited upon the execution of its proposed initial public offering and corporate demerger, signaling structural preparation for independent capital market access.
The successful arrangement of a billion-dollar facility across major banking groups underscores continued institutional confidence in global agricultural supply chains. For multinational food ingredient suppliers, access to multi-year revolving credit secures operational resiliency against fluctuating commodity prices and trade disruptions. Financial institutions participating in the transaction further demonstrate sustained appetite for large-scale corporate refinancing within the primary food processing industry.
From an investor standpoint, the substantial loan agreement reduces near-term debt maturity risks and reinforces liquidity ahead of corporate restructuring. The participation of key regional and international banks highlights strong syndication support, providing a stable financial runway for the business as it progresses toward its planned spin-off and standalone equity listing.
Olam Group is a Singapore-headquartered agricultural and food business operating in over 50 countries, supplying ingredients and raw materials to thousands of customers globally. Its wholly owned unit, ofi, specializes in naturally derived ingredients for the food and beverage industry.
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