Olam Agri, the food, feed and fibre business unit of Olam Group, has secured a US$2.9 billion credit facility based on the Poseidon Principles.

The Poseidon Principles provide a framework for integrating climate considerations into lending decisions to promote the decarbonization of the international shipping industry.

Olam Agri subsidiaries Olam Global Agri and Olam Global Agri Treasury are the co-borrowers. The facility, with a tenor of three years, is guaranteed by Olam Group. Proceeds from the loan will be used to refinance existing loans and for general corporate purposes.

A diverse group of 16 lenders participated in the deal. Acting as senior mandated lead arrangers were BNP Paribas, Citigroup, DBS Bank, JP Morgan Chase Bank, Mizuho Bank, MUFG Bank, Natixis and HSBC.

Australia and New Zealand Banking Group was the mandated leader arranger. Lead arrangers were Barclays Bank, Banco Bilbao Vizcaya Argentaria, ING, Intesa Sanpaolo, National Australia Bank, Scotiabank (BNS Asia), and Westpac Banking Corporation.

DBS, MUFG and Natixis acted as joint Poseidon Principles programme coordinators for the facility while HSBC was appointed as the facility agent.

N Muthukumar, group chief financial officer of Olam Group and chief executive officer for operations at Olam Agri, comments: “This facility is closely aligned with Olam Agri’s purpose of transforming food, feed and fibre for a more sustainable future and strengthens our resolve to improve carbon management in our freight business. We are encouraged by the strong endorsement and support from our banking partners for this facility.”