Agricultural commodities trader Olam International sold its first US dollar-denominated perpetual bond on Wednesday taking advantage of strong primary markets and investors’ ongoing hunt for yield
Proceeds from the $500 million subordinated deal are being largely used to re-finance an S$275 million ($204 million) perpetual bond, which is callable next March and has a higher 7% coupon
The unrated borrower played very much to its home market, attracting a peak order book of $1 8 billion according to syndicate bankers
The agricultural commodities sector is not faring well and Olam has had some well-publicised issues following a highly critical report by US research firm Muddy Waters in 2012
However, most investors did not appear to...