SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Olam International’s 1H2021 net profits rose 26.7% YoY to S$421.5mn ($310mn). Operating profits more than doubled to S$436.6mn ($321mn), it’s highest since the reorganization plan announced in January 2020. Revenues grew 34% to S$22.83bn ($16.8bn) helped by Olam Global Agri (OGA) and Olam Food Ingredients (OFI) that grew 12.6% to S$6.8bn ($5bn) and 48.2% to S$15.5bn ($11.4bn) respectively. The board declared an interim dividend of 4 cents per share.

OFI, which was created in early 2020 following a re-organization of Olam to maximize Olam’s long-term value, is targeting an IPO on the premium segment of the London Stock Exchange (LSE), and a concurrent listing on Singapore’s SGX. They are on track for the IPO and concurrent demerger from its parent Olam International by 1Q2022. Temasek Holdings which owns 53.2% of Olam and Mitsubishi Corporation which holds 15% supported the demerger last year.

OFI’s annual revenue in 2020 were S$12.5bn ($9.1bn) with an EBIT of S$800mn ($600mn). CEO of OFI, A. Shekar said, “The decision to pursue a stock market listing is a major milestone for OFI … The primary listing on the LSE will give us access to London’s large and diverse investor base, with its deep and liquid capital markets”. He added that the concurrent Singapore listing will allow the company to retain local shareholder base and tap thriving investor appetite in Asia.

Olam’s SGD 5.375% Perps was stable at 101.7 yielding 4.97%

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