Leading food and agri-business company, Olam International, has announced that it has upsized its flagship debt facility of $1.675 billion by $300 million, to $1.975 billion. The debt facility will be disbursed to refinance existing loans of Olam and its subsidiaries.

This information was disclosed by the company in a press release yesterday, which was seen by Nairametrics.

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According to the information contained in the press release, the company announced that it has upsized its flagship $1.675 billion multi-tranche revolving credit facility that was secured on September 10, 2020, by an additional $300 million.

The upsized facility of $1.975 billion, which has Olam’s wholly-owned subsidiary, Olam Treasury Pte. Ltd. (“OTPL”) as a co-borrower, consists of three tranches – a 364-day revolving credit facility of $790 million, a 2-year revolving credit facility of $790 million and a 3-year revolving credit facility of $395 million.

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The Management of Olam emphasized that the proceeds from the credit facility provided by a total of 25 banks, will be deployed efficiently towards refinancing existing loans of Olam and its subsidiaries.

However, the debt facility will also help the company strengthen its balance sheet, and enable the leading agri-business group to execute its plans and strategy while supporting our customers, farmer-suppliers, and other stakeholders, as they navigate through the impact of COVID-19.

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In an earlier press release on September 10, 2020, Olam International confirmed that 21 lenders participated in the flagship debt facility of $1.675 billion.

Four new banks have now joined the facility – Bank of Baroda as a Senior Mandated Lead Arranger, Bank of China, Unicredit Bank AG as Mandated Lead Arrangers, and Westpac Banking Corporation as a Lead Arranger; taking the total lenders to 25 banks.

READ: UPDATE: Dangote announces impending sale of Dangote Flour Mills Plc to Olam

Recall, in a press release on June 18, 2020, Olam international said it secured a revolving sustainability-linked credit facility aggregating $250 million, which is linked to meeting key sustainability performance indicators, aligned with the three Purpose outcomes of the Company’s sustainability strategy. The KPIs will be tracked and reported by Olam’s Corporate Responsibility & Sustainability team, while Ernst & Young will perform procedures to independently assess the achievement of the KPIs.

However, the upsized facility of $1.975 billion and other facilities since 2018 which amount to $1.675 billion, brings the total consideration of the group’s credit facility to $3.65 billion.

The parent company of Guinness Nigeria Plc, Diageo Plc disclosed that it expects sales in July to December to improve, compared to the first six months of the year as bars and restaurants reopen following coronavirus lockdowns.

This was disclosed by the CEO of Diageo Plc, Ivan Menezes, in a press release by the company today.

Ivan Menezes said that Diageo has made a good start to the fiscal year 2021, with sequential improvement in the Group’s performance across all regions, driven by strong execution, robust demand in the off-trade channel, and the gradual re-opening of the on-trade channel in most markets.

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However, as the pace of recovery from the COVID-19 pandemic, and easing of government restrictions varies by region and market, the CEO expressed optimism in the US business, as it is performing strongly ahead of expectations, reflecting resilient consumer demand, as the spirits category continues to gain share within the total beverage alcohol market.

In Europe, off-trade demand remains robust, and the on-trade channel has largely re-opened with the easing of lockdown measures in most countries, although the risk of additional restrictions remains where infection rates are worsening.

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While speaking about the performance of Diageo’s subsidiaries operating outside of the U.S. and Europe, Mr. Menezes maintained a cautious stance; “the on-trade has also begun to re-open in Africa and other regions, and as such, we expect the pace of recovery in those markets to be more gradual, as travel retail continues to be severely impacted.”

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Outlook for the first half of the fiscal year 2021

On the outlook for the first half of the fiscal year 2021, Diageo Plc expects a sequential improvement in organic net sales and operating profit, compared to the second half of fiscal 2020, but organic net sales and margin dilution in the first half of the fiscal year 2021, is expected to be lower than the first half of the fiscal year 2020.

Menezes noted that the resilience of the Group’s business and trade segment in the current challenging operating environment is really impressive. Though recovery is uncertain in the near-term, he is confident in the company’s strategy, coupled with its long-term fundamentals, as enabling factor to emerge stronger.

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Diageo products are sold in more than 180 countries around the world, it is a global leader in beverage alcohol, with an outstanding collection of brands including Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray, and Guinness.

Diageo Overseas holdings limited, is the parent organization of Guinness Overseas Limited. Guinness Overseas Limited, as of 30 June 2020, owned 50.18% of the issued share capital of Guinness Nigeria Plc.

The Lagos State Consumer Protection Agency (LASCOPA), under the aegis of the Lagos State Government, has sealed a warehouse for repackaging unwholesome and expired curry powder.

This disclosure was made this morning in a press release to the general public, which was seen by Nairametrics, via the official website of Lagos State Government.

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Acting on an anonymous tip-off from a member of the public, the Special Monitoring Team of LASCOPA, led by its General Manager, Mrs. Kemi Olugbode, paid an unscheduled assessment visit to the warehouse, to verify the claim. The tip turned out to be genuine.

This decision is in line with the State Government’s core mandate of protecting consumers from unwholesome products. The warehouse which was sealed by LASCOPA, for repackaging unwholesome and expired curry powder with the name Chinchilli and Ducross for sale, was said to be owned by Canvest Nigeria Limited. The warehouse is located at Plot 4, Cocoa Industrial Road, Ogba, Ikeja.

The General Manager, speaking after the exercise, said the enforcement team discovered thousands of expired products stored in cartons, while some were found in sacks that were ready to be repackaged for sale in the market.

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The Head of LASCOPA, emphasized that the staffs of the company involved in the fraudulent operation have been arrested. Olugbode disclosed that the property will remain sealed until the government commences prosecution of the owners of the warehouse, and all those involved in the illicit activity are apprehended.

Mrs. Olugbode, also encouraged members of the public to support the present administration’s determination to rid Lagos of all illegal activities, by reporting those who are engaged in unwholesome activities that are detrimental to the health of residents.