Leading global food and agri-business Olam International Limited (“Olam’’) on Wednesday announced that it has secured medium-term financing (the “Facility”) aggregating US$93.75 million from the Asian Development Bank (“ADB”). The 3-year term Facility has Olam Treasury Pte Ltd (“OTPL”) as a co-borrower and is guaranteed by Olam.
This Facility will provide working capital for the procurement of agri-commodities from smallholder farmers in Vietnam, Indonesia, and Papua New Guinea (PNG), bolstering Olam’s continued support to farmers and communities in vulnerable countries. Olam plays an important role in providing essential food staples, food ingredients, feed, and fibre to customers around the world in a safe, responsible, and sustainable way.
Olam’s Managing Director and Group CFO N. Muthukumar, said: “At Olam, we believe it is important to continue to support smallholder farming communities in the various countries that we operate. Covid-19 has disproportionately impacted livelihoods in emerging markets and this special financing arrangement is aligned with Olam’s Purpose outcomes of ensuring prosperous farmers and thriving communities, as well as ADB’s mandate of achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.”
ADB Deputy Director-General for Private Sector Operations Department Christopher Thieme, said: “Smallholder farmers across the region are acutely vulnerable to worsening poverty as their incomes were below average even before the pandemic. Local market closures and declining demand from small traders during Covid-19 has reduced the earnings of smallholder farmers and increased food wastage. ADB will support the livelihoods of these farmers by providing financing to Olam, which procures directly from smallholder farmers.”
