SINGAPORE: Agri-food giant Olam International has obtained Singapore’s first club loan pegged to the Singapore Overnight Rate Average (Sora) from DBS and the Industrial and Commercial Bank of China, Singapore Branch (ICBC Singapore).
A club loan is a type of syndicated loan with more than one party providing the financing.Olam has the option to enter into a Sora cross-currency swap with DBS at the start of each interest period, giving added certainty on interest rates and swap SGD proceeds into USD, the three parties said in a joint statement.The loan and the cross-currency swap mark another milestone in Singapore’s transition roadmap set out by the Steering Committee for SOR Transition to Sora (SC-STS) towards adopting Sora as the new interest rate benchmark for SGD cash and derivatives markets, they added.
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