Olam Food Ingredients to partner with Italy’s Export Credit Agency SACE

Olam Food Ingredients (“ofi”), a global leader in naturally sourced food and beverage ingredients, has secured a USD 250 million and JPY 37.38 billion term loan arranged by SMBC, with SMBC and Citi acting as lenders. The loan is guaranteed by SACE, Italy’s insurance and finance group directly controlled by the Ministry of the Economy and Finance, as part of SACE’s Push Strategy.

SACE's intervention aims to maximize business opportunities for small, medium, and large Italian enterprises in both their export and import activities. This operation holds strategic importance for the Italian economy, ensuring stability in current and future commodity supplies to the country and contributing to the growth of Italian exports.

The loan is structured in two tranches: a five-year tranche denominated in USD and a seven-year tranche denominated in JPY, marking the first "Samurai Loan" supported by SACE. The funds will be utilized by ofi for general corporate purposes.

ofi is a leading global supplier of green coffee, offering a wide range of specialty and soluble coffee products while maintaining responsible and traceable supplies from over 18 major origins. This agreement opens new opportunities for ofi to deepen collaboration with Italian buyers and suppliers. 

With a presence in Italy for over twenty years and a market share of 16%, ofi will continue supplying Italian players with raw coffee, safeguarding the supply chain of one of the most strategic sectors of the Italian F&B landscape and one of the most renowned internationally. The Italian roasting industry comprises approximately 1000 companies, ranging from small enterprises to large international groups, with a collective turnover exceeding USD 5 billion. Italian espresso represents an iconic symbol of Made in Italy.

Rishi Kalra, Executive Director and Group CFO of ofi commented: “This is ofi’s first ECA-backed facility and forms part of our financing strategy to diversify sources of capital and extend our debt maturity. We are pleased to support SACE’s ‘Push Strategy’ and look forward to enhancing our engagement with Italian customers and suppliers.”

“We are proud to partner with ofi, a leading player in the global food & beverage ingredients industry and a strategic partner for companies across the food sector, particularly in the coffee roasting industry. Indeed, one coffee cup out of six consumed in Italy is made with coffee beans provided by ofi. This Push operation will open opportunities for Italian SMEs in the agrifood supply chain, while ensuring sustainable and quality supplies to thousands of Italian coffee companies,” said Michal Ron, Chief International Business Officer of SACE.

“We are pleased to partner with ofi in its first ECA-covered financing. The financing will support ofi’s business operations and enhance its engagement with Italian customers and suppliers,” added Luca Tonello, Managing Director and Co-Head of Structured Finance Department Asia Pacific of SMBC.

Norton Rose Fullbright, serving as Legal Counsel for SMBC, Citi, and SACE, contributed to finalizing the transaction.