Olam International limited has broken an information that it has cashed in US $ 93.75 million loan from the Asian Development Bank in order to boost the local farmers in the region. Term of the loan is 3 years and has Olam Treasure Pte Ltd (OTPL) as a co-borrower and collateral lender.
This facility is planning to provide better services to the small land holding farmers of Vietnam, Indonesia and Papua New Guinea along with sink-in the agri-commodities from them at lucrative incentives. The loan is taken by Olam International limited in the same pursuit to bolster its farmer friendly Image managed well by the firm itself since long. Company enjoys a position as one of the chart-toppers in the list to provide healthier, safer and sustainable food and food commodities in several parts of the world.
N. Muthukumar, managing director and Group CFO, Olam, said, “At Olam, we believe it is important to continue to support smallholder farming communities in the various countries that we operate. Covid-19 has disproportionately impacted livelihoods in emerging markets and this special financing arrangement is aligned with Olam’s Purpose outcomes of ensuring prosperous farmers and thriving communities, as well as ADB’s mandate of achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.”
Christopher Thieme, ADB Deputy Director General for Private Sector Operations Department, said, “Smallholder farmers across the region are acutely vulnerable to worsening poverty as their incomes were below average even before the pandemic. Local market closures and declining demand from small traders during Covid-19 has reduced the earnings of smallholder farmers and increased food wastage. ADB will support the livelihoods of these farmers by providing financing to Olam, which procures directly from smallholder farmers.”