Food and agri-business company Olam International has secured a US$150 million ($205 million) loan linked to the procurement of sustainable cotton under the Better Cotton Initiative (“BCI”).
Natixis is sole lender and BCI Coordinator for the loan which has a 2-year tenor. Olam says proceeds from the loan will be used for procurement of sustainable cotton.
N Muthukumar, Group CFO of Olam said: “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.”
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, including farmers, suppliers, manufacturers, and brand owners, retailers, with more than 2,100 members.
Currently, over 2.4 million farmers now have a licence to sell their cotton as Better Cotton.
Olam says it has been “actively involved” with BCI since 2009 and works with smallholder farmers in Africa to produce cotton more sustainably, increase yields through better agronomy and positively impact the livelihoods of farming communities.
Shares of Olam closed flat at $1.73 on Dec 1.
Source: theedgesingapore.com