SINGAPORE — The International Finance Corp., the largest global development institution focused on the private sector in emerging markets, has agreed to provide a loan of up to $200 million to Olam Agri, the food, feed and fiber agribusiness subsidiary of Olam Group.
Olam said the loan will be used to finance the purchase of wheat, maize and soy from Canada, Germany, Latvia, Lithuania and the United States. The commodities then will be delivered to Olam’s processing operations and customers in developing countries, including Bangladesh, Cameroon, Chad, Egypt, Ghana, India, Indonesia, Nigeria, Pakistan, Senegal, Thailand and Turkey.
The loan is part of IFC’s broader efforts to address food insecurity, which has become a bigger concern as food prices have risen significantly in recent years due to the impacts of COVID-19, adverse climate events and the war between Russia and Ukraine.
“This facility further supports us to continue to supply staple crops and ensure food security to some of the most populous countries in Asia and Africa most at risk of global food inflation,” said N Muthukumar, chief executive officer, operations, Olam Agri. “We’re delighted to continue our long-standing partnership with IFC, aligning with Olam Agri’s focus on better access to food and nutrition for the most vulnerable and on strengthening global food security.”
Rana Karadsheh, regional industry director, manufacturing, agribusiness and services, Asia Pacific at IFC, added, “The impacts of the COVID-19 pandemic, the war in Ukraine, and climate change are having disastrous effects on food security for developing countries, erasing years of hard-won development gains. Our partnerships with key agricultural commodity-trading companies such as Olam Agri are crucial to maintaining the flow of critical food staples between countries with surpluses and deficits, ensuring better food security for the world’s poorest and most vulnerable populations.”