It is Singapore’s first club loan pegged to SORA, says DBS.
Food and agri-business Olam International has secured an approximately $145.4m (US$200m) club loan pegged to the Singapore Overnight Rate Average (SORA) with DBS Bank and Industrial and Commercial Bank of China, Singapore (ICBC Singapore).
This is Singapore’s first club loan pegged to SORA, according to DBS.
The one-year committed revolving credit facility is also the industry’s first SORA-pegged club loan coupled with a cross-currency swap.
The arrangement gives Olam the option to enter into a SORA cross-currency swap with DBS at the start of each interest period, giving added certainty on interest rates and swap SGD proceeds into USD.
Undertaken by Olam with its wholly owned subsidiary, Olam Treasury, the loan facility’s interest rate comprises two components—a compounded daily SORA rate calculated in arrears and an applicable margin.
Proceeds from the loan will be applied towards general corporate purposes of Olam and its subsidiaries.
DBS and ICBC have been appointed mandated lead arrangers and DBS is the sole bookrunner and facility agent for the loan.
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