Olam International Limited announced that it has secured a medium-term loan aggregating $93.75 million from the Asian Development Bank (ADB) to support smallholder farmers.
This disclosure was made in a press release issued by Watatawa Consulting on behalf of Olam International Limited today, the 9th of December 2020.
READ: How GEIL’s $350 million deal with international firms will be deployed
The 3-year term facility has Olam Treasury Pte Ltd (“OTPL”) as a co-borrower and is guaranteed by Olam. The $93.75 million which is the proceed from the loan, however, will be used to support smallholders farmers (SMF) and broaden the involvement of Olam in the agro-allied value chain.
READ: DEAL: Tomato Jos secures over N1.8billion series A funding
What they are saying
Olam’s Managing Director and Group CFO, N. Muthukumar, commented on the facility 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.”
READ: NERC moves to foster ‘reasonable’ electricity billing with new permits
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.”
READ: Agrorite leading the fight against food insecurity using Agtech
Why it matters
- This facility will primarily provide working capital for the procurement of agri-commodities from smallholder farmers in Vietnam, Indonesia and Papua New Guinea (PNG).
- Similarly, the proceed from this facility will also help to bolster Olam’s continued support to farmers and communities in vulnerable countries, and ward off the impact of the pandemic, as it has disproportionately impacted livelihoods in emerging markets.
- This is imperative given the important role Olam plays in providing essential food staples, food ingredients, feed and fibre to customers around the world in a safe, responsible and sustainable way. The special financing arrangement is aligned with Olam’s purpose of ensuring prosperous farmers and thriving communities.
