SINGAPORE — Olam International Ltd. and its wholly owned subsidiary Olam Treasure Pte. Ltd. have secured a revolving sustainability-linked credit facility of $250 million that is linked to meeting sustainability performance indicators.

It includes a one-year revolving sustainability-linked credit facility of $50 million, a two-year SRCF of $100 million and a three-year SRCF of $100 million. The interest margin is linked to the achievement of sustainability KPI improvement targets and could be lower than comparable conventional loans, if those targets are met. 

“This sustainability KPI linked facility is another step toward diversification of our funding mix by partnering with quality lenders who believe that Olam, as a leading force in the agricultural sector, is able to move the global sustainability agenda forward even in these challenging and uncertain times,” N Muthukumar, managing director and group chief financial officer of Olam. “This facility is the third sustainability-linked loan that Olam has executed in just the last two years with the support of our banking partners and goes to the heart of our purpose of Re-imagining Global Agriculture and Food Systems.”

Olam has identified specific KPIs that are aligned with the three purpose outcomes of the company’s sustainability strategy: prosperous farmers and food systems, thriving communities and regeneration of the living world.

The KPIs will be tracked and reported by Olam’s corporate responsibility and sustainability team. Ernst & Young will perform procedures to independently assess the achievement of the KPIs. 

This is the third such facility secured by Olam. It announced a $525 million sustainability KPI-linked RCF last year and Asia’s first sustainability-linked club loan of $500 million in 2018. Last year, it also launched the world’s first digital loan of S$350 million.