Olam secures USD SOFR-pegged club loan of USD 150 million with DBS and ICBC
Singapore.07 Dec 2021
Singapore, 07 Dec 2021 - Global food and agri-business company Olam International Limited (Olam) has secured one of Singapore’s first club loans referencing the USD Secured Overnight Financing Rate (SOFR)[1] with DBS and Industrial and Commercial Bank of China, Singapore Branch (ICBC Singapore).
This enables Olam to transition its financing instruments away from USD LIBOR as a reference rate, ahead of the December 2021 cessation guidance issued by the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. No new USD LIBOR contracts can be entered into after 31 December 2021.
N Muthukumar, Group CFO of Olam, said, “We are delighted to continue our partnership with DBS and ICBC to explore financing solutions that aid us in the transition to alternative risk-free benchmark rates ahead of the impending discontinuation of LIBOR.”
Ms Tan Su Shan, Group Head, Institutional Banking Group at DBS, shared that the bank has been actively engaging its institutional clients to transition to alternative Risk-Free Benchmark Rates (RFRs) well ahead of the impending discontinuation of LIBOR. “DBS is pleased to work with Olam and ICBC to ink one of Singapore’s first multi-bank loan referencing USD SOFR. In doing so, we are leading the way in preparing the business community for the changes currently underway in the global interest rate benchmark landscape. DBS will continue to tap on our deep market expertise to avail suitable financial solutions to support our customers with a smooth transition to the new RFRs.”
Ms Geng Hao, Deputy General Manager, ICBC Singapore, said, "ICBC Singapore is pleased to once again work with DBS in providing this maiden USD SOFR-based club financing for Olam. Through supporting this transaction, it demonstrates our steadfast commitment to continue closely collaborating with our banking partners to provide quality services and products for our clients around the world."
In September 2020, DBS and ICBC Singapore signed Singapore’s first club loan pegged to the Singapore Overnight Rate Average (SORA) with Olam. The SGD 200 million facility was also the first SORA-pegged facility to be coupled with a cross-currency swap.
Other industry milestones achieved by DBS as it helped the business community transition to RFRs include the completion of Singapore’s first USD SOFR-linked export financing transaction; pricing Singapore’s first SORA-referenced floating rate note; launching Singapore’s first business property mortgage loan referencing SORA; and executing Singapore’s first SORA-referenced interbank option trade.
[1] The Secured Overnight Financing Rate, or SOFR, has been identified by the Alternative Reference Rates Committee, a group of private-market participants convened by the Federal Reserve Board and the New York Fed, as the recommended alternative to USD LIBOR.
About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About Olam International Limited
Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to 17,300 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5 million farmers.
Through our purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders.
Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST.
Since June 2020, Olam International has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong Environmental, Social and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds.
You can subscribe to the Olam Newsroom by clicking the 'subscribe' button at the top of any page on www.olamgroup.com (privacy statement here). If you do not wish to receive information from Olam please contact media@olamnet.com.
More information on Olam can be found at www.olamgroup.com.
Follow @olam: https://twitter.com/Olam, https://www.linkedin.com/company/olam-international
Olam is located at 7 Straits View, Marina One East Tower #20-01, Singapore 018936.
Telephone: +65 63394100, Facsimile: +65 63399755.
About Industrial and Commercial Bank of China, Singapore Branch
ICBC Singapore Branch, the first overseas institution of ICBC, was established in 1993. Over years of arduous endeavor, ICBC Singapore Branch has become one of the leading commercial banks in Singapore. In 2012, ICBC was awarded the Qualifying Full Bank (QFB) License and was appointed by The People’s Bank of China as the first RMB Clearing Bank outside Greater China and the sole RMB Clearing Bank in Singapore in 2013.
As a QFB bank, we provide a whole range of corporate, institutional and personal banking products and services. The QFB license is significant as we take this opportunity to promote trade and investment between China and ASEAN countries, serve the customers through our full-fledged suite of financial products and services, including retail banking, credit cards, corporate banking, institutional banking, investment banking and private banking.
As the sole RMB Clearing Bank in Singapore, ICBC Singapore Branch is able to deliver comprehensive and innovative RMB cross-border products and services to all our valued customers. We have a strong track record in assisting companies to take advantage of business opportunities arising from the close bilateral trading and investment relationship between Singapore and China.
This enables Olam to transition its financing instruments away from USD LIBOR as a reference rate, ahead of the December 2021 cessation guidance issued by the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. No new USD LIBOR contracts can be entered into after 31 December 2021.
N Muthukumar, Group CFO of Olam, said, “We are delighted to continue our partnership with DBS and ICBC to explore financing solutions that aid us in the transition to alternative risk-free benchmark rates ahead of the impending discontinuation of LIBOR.”
Ms Tan Su Shan, Group Head, Institutional Banking Group at DBS, shared that the bank has been actively engaging its institutional clients to transition to alternative Risk-Free Benchmark Rates (RFRs) well ahead of the impending discontinuation of LIBOR. “DBS is pleased to work with Olam and ICBC to ink one of Singapore’s first multi-bank loan referencing USD SOFR. In doing so, we are leading the way in preparing the business community for the changes currently underway in the global interest rate benchmark landscape. DBS will continue to tap on our deep market expertise to avail suitable financial solutions to support our customers with a smooth transition to the new RFRs.”
Ms Geng Hao, Deputy General Manager, ICBC Singapore, said, "ICBC Singapore is pleased to once again work with DBS in providing this maiden USD SOFR-based club financing for Olam. Through supporting this transaction, it demonstrates our steadfast commitment to continue closely collaborating with our banking partners to provide quality services and products for our clients around the world."
In September 2020, DBS and ICBC Singapore signed Singapore’s first club loan pegged to the Singapore Overnight Rate Average (SORA) with Olam. The SGD 200 million facility was also the first SORA-pegged facility to be coupled with a cross-currency swap.
Other industry milestones achieved by DBS as it helped the business community transition to RFRs include the completion of Singapore’s first USD SOFR-linked export financing transaction; pricing Singapore’s first SORA-referenced floating rate note; launching Singapore’s first business property mortgage loan referencing SORA; and executing Singapore’s first SORA-referenced interbank option trade.
[1] The Secured Overnight Financing Rate, or SOFR, has been identified by the Alternative Reference Rates Committee, a group of private-market participants convened by the Federal Reserve Board and the New York Fed, as the recommended alternative to USD LIBOR.
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About Olam International Limited
Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to 17,300 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5 million farmers.
Through our purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders.
Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST.
Since June 2020, Olam International has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong Environmental, Social and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds.
You can subscribe to the Olam Newsroom by clicking the 'subscribe' button at the top of any page on www.olamgroup.com (privacy statement here). If you do not wish to receive information from Olam please contact media@olamnet.com.
More information on Olam can be found at www.olamgroup.com.
Follow @olam: https://twitter.com/Olam, https://www.linkedin.com/company/olam-international
Olam is located at 7 Straits View, Marina One East Tower #20-01, Singapore 018936.
Telephone: +65 63394100, Facsimile: +65 63399755.
About Industrial and Commercial Bank of China, Singapore Branch
ICBC Singapore Branch, the first overseas institution of ICBC, was established in 1993. Over years of arduous endeavor, ICBC Singapore Branch has become one of the leading commercial banks in Singapore. In 2012, ICBC was awarded the Qualifying Full Bank (QFB) License and was appointed by The People’s Bank of China as the first RMB Clearing Bank outside Greater China and the sole RMB Clearing Bank in Singapore in 2013.
As a QFB bank, we provide a whole range of corporate, institutional and personal banking products and services. The QFB license is significant as we take this opportunity to promote trade and investment between China and ASEAN countries, serve the customers through our full-fledged suite of financial products and services, including retail banking, credit cards, corporate banking, institutional banking, investment banking and private banking.
As the sole RMB Clearing Bank in Singapore, ICBC Singapore Branch is able to deliver comprehensive and innovative RMB cross-border products and services to all our valued customers. We have a strong track record in assisting companies to take advantage of business opportunities arising from the close bilateral trading and investment relationship between Singapore and China.
