ASAA 2022 Citi Yearbook

Overall Winner Judges’ Choice Jayant Parande President & Global Head – Treasury, IR and TSF, Group Treasurer Olam Group Reorganisation and acquisition drives Olam to totally restack its entire debt portfolio The challenge In January 2020, Olam Group announced a major corporate reorganisation to split its business into three independent operating groups. The reorganisation required the company to restack its entire debt portfolio (approximately US$20bn of facilities) into the three new operating groups spanning public and private bonds, committed revolving credit facilities (RCFs)/term loans, bilateral working capital lines and FX facilities, while continuing to meet the day-to-day requirements of the business. The solution The first step initiated by the treasury team was to work with its core relationship banks to put in place substantial backstop facilities (of approximately US$6.7bn) to facilitate the debt reorganisation including: • Three-year term loan of US$1.2bn from Citi, HSBC, J.P. Morgan and MUFG. • 18-month bridge facility of US$5.5bn from Citi, HSBC, J.P. Morgan, MUFG, BNP, Credit Suisse, DBS, Mizuho and Rabobank. The team then appointed HSBC and Standard Chartered Bank as debt advisors to put in place additional US$2.5bn of targeted facilities. With those facilities in place, the treasury team launched a phased consent process across its debt portfolio as follows: Balaji Ramanchandran, Aditya Renjen, Jai Gurtoo, Jayant Parande, Amit Kansal and Irene Chan, Olam Group 18 | treasurytodayasia Adam Smith Awards Asia © February 2023