PIF-backed Olam Agri raises nearly $2bn

• PIF stake owned through Salic
• $250m Islamic tranche
• Dual listing plan delayed

Singapore-based agribusiness Olam Agri Holdings, partially owned by Saudi Arabia’s Public Investment Fund (PIF), has secured $1.85 billion in financing to support its business goals.

The dual-tranche conventional and Islamic facility was raised by Olam Global Agri and Olam Global Agri Treasury Pte, two subsidiaries of Olam Agri — which sources, processes, trades and distributes food and commodities — according to a statement.

The facility, $1.6 billion conventional and a $250 million Islamic tranche, is currently guaranteed by Olam Group, which will be transferred to Olam Agri upon its demerger.

In February, Saudi Agricultural and Livestock Investment Company (Salic), a wholly owned subsidiary of the kingdom’s sovereign wealth fund, agreed to acquire a 45 percent stake in Olam Agri Holdings for $1.8 billion. It bought a 35 percent stake for $1.2 billion in November 2024. 

Salic holds a call option to buy the remaining 20 percent stake in Olam Agri, one of the three operating groups in Olam Group, on or before the third year from the latest stake sale.

• Rising cocoa prices could dampen cravings for Dubai chocolate
• Saudi coffee chain Barn’s plans IPO on Tadawul
• Climate change and rising costs challenge Turkish tea producers

First Abu Dhabi Bank and Dubai Islamic Bank (DIB) were mandated lead arrangers for the conventional and Islamic tranches.

HSBC and DIB were the facility agents for the conventional and Islamic tranches. 

In August 2023, Olam Group announced plans for Olam Agri’s dual listing in Singapore and Saudi Arabia by the first half of 2024. However, regulatory delays have since pushed back the timeline.