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Olam International, a leading agribusiness company, yesterday announced that it has secured a $1 billion revolving credit facility via its wholly owned European subsidiary, Olam Holdings B.V.

The Singapore-based company said proceeds from the facility will be applied towards refinancing existing syndicated/ bilateral bank loans in the parent company and subsidiaries.

The facility consists of three tranches: (1) a 364-day revolving credit facility of $400 million, (2) a two-year revolving credit facility of $300 million, and (3) a three-year revolving credit facility of $300 million. The company said the facility is guaranteed by the parent company and is the first revolving credit facility secured by Olam in Europe.

“We are extremely pleased to have secured this financing which helps to optimise the overall tenor as well as reduce the cost of our debt portfolio,” said Jayant Parande, President & Global Head of Treasury & Investor Relations at Olam. “We would like to thank our banking partners for their strong support for our debut European loan transaction.”

Several global banks participated in the fund-raising mainly through their Singapore branches. These banks include: Banco Santander, The Bank of Tokyo-Mitsubishi UFJ, ABN Amro Capital, Commerzbank AG, ING Bank N.V., Wells Fargo Bank, Unicredit Bank AG, and Intesa Sanpaolo Bank.

Olam – the agribusiness company owned by Temasek, Singapore’s state investment company – is the largest agricultural export company in Nigeria, dealing in the export of cocoa, cashew, sesame, and cotton. The company also owns OK Foods Limited, a biscuit and confectionary maker; Olam Sanyo, a noodles maker; Caraway Foods, makers of culinary ingredients; Ranona Nigeria Limited, makers of breakfast cereals, juices and beverages.

Last year, Olam announced that it had commenced the construction of ultra-modern animal feed mills, poultry breeding farms, and a hatchery in Kaduna and Kwara states. The project is valued at $150 million. The company also agreed to buy the wheat and pasta businesses of Bua Group for $275 million.

Olam is also at the forefront of Nigeria’s plans to become self-sufficient in rice production by 2018. In 2013, the company said it will invest N19 billion in a 10,000-hectare rice farm in Nassarawa State to produce 36,000 metric tonnes of rice for the Nigeria market under Mama’s Pride and Mama’s Choice brands.

Olam International began its global agricultural commodities trading business in Nigeria in 1989 and has invested over $1 billion in the country’s agriculture sector in the last ten years.