Olam International has secured a US$1.45 billion facility to help fund activities carried out over its AtSource sustainability insights platform.

AtSource is the agri-food giant’s own system of helping itself and its customers keep tabs on the numerous supply chains. Besides measuring data on supply chain parameters, AtSource claims to also provide insights into the various parties can help improve.

N Muthukumar, managing director and group CFO of Olam, is happy with the “strong endorsement” and support from the banks.

“This unique facility links the financing to procurement done via our proprietary AtSource sustainability platform which in-turn catalyses responsible data-and insights-driven growth with our customers,” he says.

Roel Van Poppel, CEO of AtSource, explains that AtSource was created to anticipate growing consumer demand for transparency, traceability and provenance of their goods. 

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“As the data provides demonstrably clear social and environmental impact, AtSource allows both Olam and its customers to drive meaningful change for farmers, communities and ecosystems,” he says.

“This in turn allows us collectively to deepen trust and confidence with consumers to create greater business value,” he claims.

Olam’s wholly-owned subsidiary, Olam Treasury, is a co-borrower in the facility. 

The two-tier facility consists of a multi-year revolving credit facility of US$950 million and a 3-year term loan facility of US$500 million. The RCF is further split into 3 tranches – a one year tranche of US$190 million, a 2-year tranche of US$380 million and a 3-year tranche of US$380 million.

The facility is jointly provided by 18 banks, including Barclays Bank; Citibank; Credit Agricole Corporate & Investment Bank; DBS Bank; Deutsche Bank; JP Morgan Chase Bank; Maybank; Standard Chartered Bank; The Hongkong And Shanghai Banking Corporation; Australia And New Zealand Banking Group; BNP Paribas; Natixis; Scotiabank (BNS Asia); Banco Bilbao Vizcaya Argentaria; Intesa Sanpaolo; MUFG Bank; National Australia Bank and Rabobank. 

DBS, SCB and HSBC are joint AtSource program co-ordinators for the facility.

Olam shares closed March 31 at $1.72, down 2.27%.