SINGAPORE — Olam Agri, the food, feed, and fibre agribusiness arm of Olam Group, has secured a $200 million loan from The International Finance Corp., the largest global development institution focused on the private sector in emerging markets.

Olam shared the loan will finance the company’s purchase of wheat, maize, and soy from Canada, Germany, Latvia, Lithuania, and the United States. The commodities be transported to Olam’s processing operations and customers in developing countries, including Bangladesh, Cameroon, Chad, Egypt, Ghana, India, Indonesia, Nigeria, Pakistan, Senegal, Thailand, and Turkey.

The IFC provided the loan to help address food insecurity, which has become a bigger concern following the continuous increase in global food prices in recent years due to the adverse effects of climate change, the pandemic, and the Russia and Ukraine war. 

“This facility further supports us to continue to supply staple crops and ensure food security to some of the most populous countries in Asia and Africa most at risk of global food inflation,” said N Muthukumar, chief executive officer, operations at Olam Agri. “We’re delighted to continue our long-standing partnership with IFC, aligning with Olam Agri’s focus on better access to food and nutrition for the most vulnerable and on strengthening global food security.”

Rana Karadsheh, regional industry director, manufacturing, agribusiness and services, Asia Pacific at IFC, added, “The impacts of the COVID-19 pandemic, the war in Ukraine, and climate change are having disastrous effects on food security for developing countries, erasing years of hard-won development gains. Our partnerships with key agricultural commodity-trading companies such as Olam Agri are crucial to maintaining the flow of critical food staples between countries with surpluses and deficits, ensuring better food security for the world’s poorest and most vulnerable populations.”