GLOBAL food and agri-business Olam International announced on Wednesday night that it has priced a S$100 million reopening of its 4 per cent fixed rate senior unsecured notes due Feb 24, 2026 via a private placement exercise.

 

This increases the total bond size to a benchmark quantum of S$600 million, consolidating and forming a single series with existing fixed-rate senior unsecured notes.

 

The reopening offering will be issued at par, plus accrued interest from the issue date of the Tranche 1 and Tranche 2 notes. It is payable semi-annually in arrear. The notes are scheduled to be issued on Feb 3, 2021.

 

Proceeds from the issuance will be used by Olam for debt refinancing and general corporate purposes.

 

HSBC Singapore acted as the sole dealer for the reopening offering.

 

AGRIFOOD giant Olam International has priced S$250 million of perpetual securities at 5.375 per cent, following an intraday book-building exercise.

 

The new perps are expected to be issued at par on Jan 18, 2021, Olam said in a bourse filing on Tuesday. They fall under the group' s US$5 billion euro medium-term note programme.

 

Olam managing director and chief financial officer N Muthukumar said the issuance marks the group' s return to the public capital markets for perps since 2017.

 

The issue was well subscribed and the final distribution rate of 5.375 per cent was tightened from an initial pricing guidance of 5.5 per cent, he noted.

 

The perps will bear the 5.375 per cent distribution rate for the first five-and-a-half years. At the end of this time period, the distribution rate will reset at a rate equivalent to the prevailing swap offer rate plus the initial spread of 4.807 per cent, plus the step-up margin of 2 per cent.

 

Olam will use the issuance' s net proceeds for working capital purposes and general corporate purposes. These include financing capital expenditure, repaying existing debt and potential acquisition opportunities which the group and/or its subsidiaries may pursue in the future as part of its strategic objectives, it said.

 

The joint lead managers for the perps were Credit Suisse (Singapore), DBS, HSBC Singapore Branch and Standard Chartered Bank (Singapore).