Olam International gets $200m EBRD loan
The EBRD loan will finance purchases of agricultural commodities such as hazelnuts, dry dairy products, grain and onions in selected countries of operation. Local subsidiaries of the company will take on the processing, storage and distribution of these goods.
The European Union and the TaiwanBusiness-EBRD Technical Cooperation Fund will provide donor support for the development of new methodologies and processes for climate-related risk management and stress testing in Egypt and Turkey.
Olam International is a food and agribusiness company supplying food, ingredients, feed and fiber to more than 25,000 customers in more than 60 countries worldwide. The company is 53.4% owned by Temasek Holdings and 17.4% by Mitsubishi Corporation.
The company recently published it’s H1 2020 results, which showed a 7.1% year-on-year increase in revenue, but an 18.8% drop in EBIT. Its Olam Food Ingredients (OFI) division, which includes dairy ingredients, showed an 8.8% increase in revenue compared to the same period in 2019, but a drop in EBIT of 40.1%.
To date, the EBRD has invested close to €13bn ($15.5bn) in more than 740 agribusiness projects, of which 99% are in the private sector. The EBRD aims to enhance agribusiness value chains and promote economic transition across the regions where it invests.