Olam is part of the Kewalram Chanrai Group (KCG), which is held privately by overseas Indian family trusts. From the Chanrai family's beginnings in trading in Nigeria and India in 1860, KCG has grown to become a $1.6 billion (turnover) operation with interests in textile, agro-commodities, software development and distribution, automobile, office automation and property development employing over 12,000 people in over 45 countries. Olam is currently owned at 68.8% by KCG and the management team, and 31.2% by financial investors (including IFC for 9.4%).

The $150 million facility will be made of three components : - a $50 million 6-month general working capital facility, - a $20 million 60 days pre-shipment facility, and - a $80 million post-shipment / warehouse financing facility. The facility will be managed by Standard Chartered Bank (SCB). IFC is considering to provide a partial guarantee for the facility for up to $50 million. Other institutional investors or banks will be offered to take risk participations in the facility for up to $50 million. SCB will retain full risk exposure for the remaining $50 million.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	30.0
Loan
Equity

* These investment figures are indicative

Based in Singapore, Olam operates in 36 countries, including 22 frontier countries.

- Development Impact: IFC’s continued support to Olam, a company with a proven record in reaching out to challenging agricultural regions, will provide unique growth opportunities to local communities and SMEs in developing countries through better global market access for their production. The working capital facility will support Olam’s growth in Africa and Asia (particularly Vietnam and Indonesia). The project’s development impact include continued direct benefits to rural populations and a demonstration impact on sustainability. Olam's operations provide substantial benefits to rural areas of many developing countries given the company's ability to - enhance the efficiency and transparency of agribusiness logistics and - provide knowledge transfer in the primary processing of products which set high standards needed to meet the requirements of international buyers, thereby providing best practices for local companies to emulate. With Sub-Saharan Africa accounting for 60% of the facility, IFC's continued support to Olam complements the World Bank's efforts in liberalizing the commodity export markets in many developing countries. It also provides support for IFC’s efforts to promote private sector development and the export sectors (including the diversification of export products) in these countries. - IFC’s Role : IFC presence will be viewed as an endorsement of Olam new working capital strategy to shift from country and commodity specific structured trade finance lines to general flexible lines. This will allow Olam to increase trading volumes from Africa (mainly Cameroon, Ivory Coast and Nigeria) as well as Vietnam, for its traditional and high margin commodities (rice, sugar, timber, cashews, sesame and sheanuts). The IFC Facility that will be committed for 2 years and will be the first multi-year committed facility extended to Olam. Other facilities extended are either not committed or committed only for a season. The committed nature of the facility will allow Olam to better plan its operations and also increase buyers and suppliers loyalty, which is key in Olam’s industry.

This is a category C project according to IFC''s environmental and social review procedure.

IFC made an equity investment in Olam last year. An extensive environmental and social review of Olam''s operations was made at that time and they were determined to be in compliance with IFC requirements. Further, both Olam’s business model and its corporate social responsibility model aim to achieve mutually beneficial, stable business relationships between the company and its suppliers.

Although a small proportion of overall company revenue, Olam trades in timber but promotes sustainable forest management practices and its operations are considered fully consistent with the requirements of the November 2002 World Bank Forests Policy.

Through this earlier investment, Olam''s environmental and social performance will be regularly assessed by IFC.
Location of environmental documents in locally affected community