Olam II WC Loan

completed

The proposed investment consists of a corporate loan facility of US$ 175 million to Olam International Limited (“Olam” or the “Company”). Specific use of proceeds will be for permanent working capital and capital expenditure requirements in respect of four operations, namely 1) India – Hemarus Sugar Mill Industries Limited (HIL), 2) India – Spices Processing Facility (SVI), 3) Nigeria – Crown Flour Mill plant (CFM), and 4) Nigeria – Sesame Processing plant (the “Project”). Olam is a vertically integrated multinational agri-business company operating worldwide and across the value chain from primary production to agro-commodity procurement, logistics, trading, processing and distribution. Its global footprint encompasses all segments of agro-commodity value chains, from upstream (plantations, concessions and farms - PCF) operations, covering 2.1 million hectares, including 1.3 million ha of Forest Stewardship Council (FSC) certified tropical forestry concessions; midstream operations, including 135 primary and secondary agro-processing units located in countries of origin to maximize value-addition and job creation; and, finally, agro-commodity sourcing operations covering a range of 44 agricultural raw materials and food ingredients organized across 16 platforms and operating in 65 countries of origin. Olam supplies raw and processed goods to more than 13,800 customers worldwide, including Unilever, Nestle, Coca-Cola, and Costco. Olam holds leadership positions in numerous agro-commodities values chains, including number 1 global supplier of cashews, sesame, dehydrated onion and garlic; FSC certified tropical timber products; cocoa trader and exporter; and private cotton ginner. It holds the number 2 global position as supplier and merchant of coffee, rice and cotton as well as almond grower. Finally, it holds the number 3 global position as supplier of hazelnuts and dairy products. This is the 2nd IFC investment in Olam International following an initial corporate loan investment of US$120 million (#31566) which was approved in July 2013 and has since been repaid. Olam’s EHS performance against IFC’s Performance Standards requirements and implementation of E&S Action Plan (ESAP) during the previous investment was judged satisfactory. The scope of this new corporate loan investment (#34841) includes four of the five agro-processing facilities targeted under the original investment in 2013 (#31566), with the exception of the Nigerian cashew processing plant.