Leading global food and agri-business Olam International Limited (“Olam’’) has secured a financing facility (“the Facility”) linked to the procurement of sustainable cotton under the Better Cotton Initiative (“BCI”).
Aggregating US$150 million, the Facility has a 2-year tenor and has Olam Treasury Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd. as co-borrowers. Proceeds from the Facility will be used for procurement of sustainable cotton licensed by BCI.
N Muthukumar, Group CFO of Olam, said:
“Olam continues to re-imagine what sustainable financing can look like through innovative, purpose-driven initiatives that have the strong support of our banking partners. This Facility supports Olam’s procurement of sustainable cotton via the Better Cotton Initiative, while combining Olam’s operational ability, leadership position in cotton and sustainability focus with the banks’ objective of supporting more financing linked to sustainable activities.”
Olam has been actively involved with BCI since inception in 2009 and works with smallholder farmers in Africa to produce cotton more sustainably, increase yields through better agronomy and positively impact livelihoods of farming communities.
BCI is the world’s leading sustainability initiative for cotton. Its mission is to help cotton communities survive and thrive, while protecting and restoring the environment. Its membership includes stakeholders who span the industry – farmers, ginners, spinners, suppliers, manufacturers, brand owners, retailers, civil society organisations, donors and governments aggregating more than 2,100 members. Currently over 2.4 million farmers now have a licence to sell their cotton as Better Cotton.
Natixis is sole lender and BCI Coordinator for the Facility.