Olam International, a leading agri-business operating across the value chain in 65 countries, on March 17 announced the issuance of A$125 million (US$98 million) five-year senior unsecured notes as it diversifies its funding sources at competitive pricing.

The unrated offering was priced at 99.835% with a coupon of 4.875% following an intra-day bookbuilding exercise. The post-swap US dollar fixed coupon will be 4% per annum, with the proceeds to be used to fund Olam's working capital requirements.

This was the first transaction by Olam in the Australian dollar market and was in line with its financing strategy of diversifying its borrowing mix across currencies and geographies in a cost effective manner.

The bonds are drawn under Olam's US$5 billion euro medium term note (EMTN) programme, making the company the first unrated issuer to print a public Australian EMTN deal.

Westpac Banking Corporation acted as the sole manager for the transaction.

This was the second fund raising announced by Olam in 2015. On January 15, it announced the issuance of US$50 million five year senior notes in a private placement transaction. The bonds were placed to an institutional investor at a fixed coupon of 4%.

HSBC was the sole manager for the deal.