Olam Issues $337m 10-Year Senior Unsecured Bonds
August 10, 2010 StockMarketsReview.com
Olam International (Olam) has issued US$250m ($337m) in unsecured bonds, the leading global, integrated supply chain manager of agricultural products and food ingredients said in a statement on the Singapore Exchange. The Bonds have a maturity of 10 years, which provide Olam with long term financing, enabling it to further term out its debt maturity profile. The Bonds were priced at par and bear a coupon of 7.5% in line with the pricing guidance. According to Olam, this is the first unrated offering of US-dollar denominated bonds by a Singapore issuer in the international bond market. Olam said it will use the net proceeds of the bond issue for capital expenditure and the financing of potential acquisitions. In the meantime, the bond issue was oversubscribed by more than 80 investors, with 79% from Asia and 21% from Europe. In terms of investor classes, 46% of the allocation was to private banks, 33% to fund managers, 19% to other banks and 2% to others.
Significance: As a debutant to the dollar market, locking in the 10-year funding at attractive historical yields seem attractive, despite a fairly flat period for bond market last week.
Country of riskSingapore
Redemption (put/call option)
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