ofi raises $300M in food sector's first bank-funded hybrid deal
What's the deal? Olam food ingredients (ofi)Dealroom has a profile for this one. Try Dealroom →, the operating unit of Singapore-listed Olam GroupDealroom has a profile for this one. Try Dealroom →, has raised $300 million through its first Perpetual Hybrid Capital Instrument. The company describes it as the first syndicated bank-funded hybrid capital issuance in the food and beverage sector.
The details: A consortium of international banks arranged the transaction, issued via ofi Treasury B.V. Proceeds will refinance existing debt and fund general corporate purposes.
Why now? The deal broadens ofi's access to long-term capital and diversifies its funding sources. It comes with flexible redemption and put options — a new financing platform to support the company's long-term growth plans.
What's the endgame? ofi says the move will not materially affect debt or gearing levels for itself or Olam Group. In other words, it strengthens the capital structure without significantly altering the leverage profile.
The numbers behind it: ofi supplies food and beverage ingredients to more than 11,000 customers across over 50 countries. Olam Group carries a market capitalisation of US$2.72B.
The signal: At $300 million, this ranks among the largest debt deals in Singapore's food sector, sitting in the 93rd percentile of comparable rounds all-time. By pioneering a bank-funded hybrid structure in food and beverage, ofi is testing a financing model that peers in the sector may follow.
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