Olam International will issue $100 million subordinated perpetual securities under its US$5 bil Euro Medium Term Note Programme (EMTN Programme).

The issuance follows the issuance of $250 million subordinated perpetual securities issued under the same programme on Jan 18.

The issuance was priced at 100.013% of the aggregate principal amount plus accrued interest from (and including) Jan 18.

The securities will constitute direct, unconditional, unsecured and unsubordinated obligations of Olam. There is no maturity date for the securities.

The securities bear a distribution rate of 5.375% up until July 18, 2026.


Want our latest Singapore corporate news stories for FREE

Follow our Telegram, Facebook for the latest updates round the clock

SEE:Olam International acquires 51% stake in Togo's state-owned cotton company for $24.4 mil


The distribution rate will then be reset and subject to a step-up margin at the end of five years from July 18, 2026, and each date falling every five years thereafter.

The Hongkong and Shanghai Banking Corporation (HSBC), Singapore branch has been appointed  as the sole manager for the issuance.

The securities are expected to be issued on April 26.

Net proceeds from the issuance will be used by the group for debt refinancing and/or any of the purposes listed in the offering circular dated May 5, 2020.

Shares in Olam closed flat at $1.73 on April 20.