<article>Singapore-based agri business major <a href="http://www.dealstreetasia.com/?s=olam+international+">Olam International Limited</a>, has <a href="http://www.shareinvestor.com/news/news.html?source=sg_si_express&amp;nid=138767" target="_blank">announced </a><a style="color: #000000;" href="http://www.shareinvestor.com/news/news.html?source=sg_si_express&amp;nid=138767" target="_blank">t</a>he issue of $500 million of perpetual capital securities under its $5 billion Euro Medium Term Note (EMTN) programme.</article>

Singapore-based agri business major <a href="http://www.dealstreetasia.com/?s=olam+international+">Olam International Limited</a>, has <a href="http://www.shareinvestor.com/news/news.html?source=sg_si_express&amp;nid=138767" target="_blank">announced </a><a style="color: #000000;" href="http://www.shareinvestor.com/news/news.html?source=sg_si_express&amp;nid=138767" target="_blank">t</a>he issue of $500 million of perpetual capital securities under its $5 billion Euro Medium Term Note (EMTN) programme.
Over 115 investors participated resulting in an order book that was approximately 3.4 times oversubscribed. There is no maturity date for the capital securities.
The capital securities were also priced at par and bear a distribution rate of 5.35 per cent for the first five years which was below the initial pricing guidance.
Neelamani Muthukumar, Olam&#8217;s Group CFO said: &#8220;This deal is the largest ever US dollar corporate perpetual offering by a Singapore-based issuer. We are extremely pleased by the broad-based participation by both institutional investors and private banks that resulted in a significantly oversubscribed order book.&#8221;
Olam has added that the transaction is in line with the group&#8217;s strategy of &#8220;actively managing its capital structure in a cost-effective manner.&#8221;
An estimated 91% of the capital securities were allocated to Asian investors, with the remainder allocated to European investors. Aside from demand from private banking accounts, institutional investors such as fund managers and banks were collectively allocated 46% of the issuance.
Olam may also choose to redeem the capital securities in whole on or after the fifth anniversary of the issue date.
Olam made headlines recently with its efforts to seek economic transformation in Africa&#8217;s Gabon.
Olam, a partner in Gabon&#8217;s Special Economic Zone (SEZ), has contributed capital, technical expertise and banking connections. In addition, Olam is also involved in developing a mineral port in Libreville and palm oil and rubber plantations as well as operations in the hinterland.
The International Monetary Fund also believes that such large-scale investment in agriculture, especially towards cash crops like palm oil and rubber, can reverse Gabon&#8217;s economic slowdown.
Olam which was founded in 1989, has expanded to 45 commodities in 65 countries and has registered $13.6 billion in annual revenues and more than $650 million in profits. It has gone on to become one of the best-performing IPOs in Asia over the last decade.
It is currently developing 50,000 hectares arable land into an industrial oil-palm plantation in northern Gabon. An additional 30,000 hectares will also be laid out for small-scale palm-oil growers.
Also Read: 
<a href="http://www.dealstreetasia.com/stories/olam-bets-on-africa-reward-as-on-the-go-food-demand-to-climb-34457/">Temasek-backed Olam bets on Africa reward as on-the-go food demand to climb</a>
<a href="http://www.dealstreetasia.com/stories/sg-dealbook-9-26439/">Singapore: Olam acquires wheat mills,expands African footprint</a>
<a href="http://www.dealstreetasia.com/stories/temasek-controlled-commodities-firm-olam-plans-big-ma-push-in-africa-13928/">Temasek-controlled commodities firm Olam plans big M&amp;A push in Africa</a>

Singapore agri commodities major Olam issues $500m perpetual capital securities

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Singapore agri commodities major Olam issues $500m perpetual capital securities

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