Agricultural commodities trader Olam International sold its first US dollar-denominated perpetual bond on Wednesday taking advantage of strong primary markets and investors’ ongoing hunt for yield.
Proceeds from the $500 million subordinated deal are being largely used to re-finance an S$275 million $204 million perpetual bond, which is callable next March and has a higher 7% coupon.
The unrated borrower played very much to its home market, attracting a peak order book of $1.8 billion according to syndicate bankers.
The agricultural commodities sector is not faring well and Olam has had some well-publicised issues following a highly critical report by US research firm...
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