Home » Olam Group announces US$625 million Sharia-compliant financing facility

Olam Group announces US$625 million Sharia-compliant financing facility

by Madaline Dunn

Olam Group’s food, feed and fibre operating group, Olam Agri, recently secured a commodity Murabaha facility from a diversified group of global investors, including from the UAE, totalling US$625 million.

According to the company, the Facility is initially guaranteed by Olam Group, which will transfer to Olam Agri after the planned IPO and demerger of Olam Agri.

Proceeds from the Facility will be applied towards general corporate purposes, it noted.

Alongside UAE investors, other investors are from Malaysia, Singapore and Hong Kong,

The company shared that Emirates NBD Capital Limited and Abu Dhabi Commercial Bank are the Global Shariah Co-ordinators for the Facility.

Meanwhile, Abu Dhabi Commercial Bank, Emirates NBD Bank, and First Abu Dhabi Bank (FAB) are the Senior Mandated Lead Arrangers for the Facility.

Citibank N.A., Credit Agricole Corporate and Investment Bank, HSBC Amanah, Mizuho Bank Ltd, MUFG Bank (Malaysia), Berhad, and Standard Chartered Bank are the Mandated Lead Arrangers.

Emirates Islamic Bank is the Lead Arranger, and FAB is the Investment Agent.

Commenting on the sharia-compliant financing facility, N Muthukumar, Group CFO of Olam Group and CEO of Operations at Olam Agri, said: “This landmark commodity Murabaha financing further diversifies Olam Agri’s funding mix with access to a new investor pool which provides financing on the basis of Shariah principles.”

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