Temasek-backed Olam secures $2.2bn loan

Debt-ridden agricultural commodities trader Olam nails $2.2 billion credit facility at competitive rates, benefiting from the Temasek halo effect.

Agricultural commodities trader Olam International has secured a $2.2 billion 364-day facility from 12 lenders at competitive rates, underscoring the Temasek halo effect.

Debt-ridden Olam came under attack from short-seller Muddy Waters in 2012 after its founder Carson Block questioned the company's accounting practises and denounced its debt as unsustainable. However, Olam went on to survive the attack once shareholder and Singapore state investment arm Temasek Holdings raised its stake, underlining its support for the company.

Temasek went a step further in March, making an offer for Olam in a deal that valued the company at $4.2 billion. Breedens Investments, a subsidiary of Temasek, offered S$2.23 in...

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