Regional: Olam Global Agri Food Security Support Project
ADB proposes to provide a loan facility of up to $80 million to Olam Global Agri Private Limited (OGA) and Olam Global Agri Treasury Private Limited (OGTPL). The loan will be guaranteed by the ultimate holding company Olam Group Limited (OGL). The use of loan proceeds will be earmarked for working capital in Bangladesh, India, Indonesia, Nepal, Pakistan and Viet Nam. The facility will have a maturity of 3 years.
Project Details
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Project Officer
Noorullah
Private Sector Operations Department
Request for information -
Approval Date
13 December 2022 -
Country/Economy
Regional -
Sector
- Agriculture, natural resources and rural development
| Project Name | Olam Global Agri Food Security Support Project | |||||
| Project Number | 56198-001 | |||||
| Borrower / Company | Olam Global Agri Private Limited Olam Global Agri Treasury Private Limited Olam Group Limited |
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| Country / Economy | Regional Bangladesh India Indonesia Nepal Pakistan Viet Nam |
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| Location | Bangladesh - Nation-wide; India - Nation-wide; Indonesia - Nation-wide; Nepal - Nation-wide; Pakistan - Nation-wide; Viet Nam - Nation-wide | |||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Agriculture, natural resources and rural development / Agro-industry, marketing, and trade |
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| Gender Equity and Mainstreaming | Some gender elements | |||||
| Responsible ADB Department | Private Sector Operations Department | |||||
| Responsible ADB Division | Office of the Director General, PSOD | |||||
| Responsible ADB Officer | Noorullah | |||||
| Project Sponsor(s) | ||||||
| Description | ADB proposes to provide a loan facility of up to $80 million to Olam Global Agri Private Limited (OGA) and Olam Global Agri Treasury Private Limited (OGTPL). The loan will be guaranteed by the ultimate holding company Olam Group Limited (OGL). The use of loan proceeds will be earmarked for working capital in Bangladesh, India, Indonesia, Nepal, Pakistan and Viet Nam. The facility will have a maturity of 3 years. | |||||
| Objectives and Scope | The project will support the populations in Bangladesh, Indonesia, and Nepal by increasing access to essential food staples (wheat and pulses) and thus supporting food security. In addition, the project will support the livelihoods of smallholder rice farmers in India, Pakistan, and Viet Nam by financing rice exports from these countries. Disruptions to supply chains caused by the Russian invasion of Ukraine have induced a commodity supercycle leading to increased food insecurity for populations dependent on food imports and for smallholder farmers whose livelihoods are under threat due to increased input prices. | |||||
| Linkage to Country/Regional Strategy | The project is aligned with ADB recently announced $14 billion initiative to support long-term food security in the Asia and Pacific region over 2022 to 2025. The project is also aligned with ADB Strategy 2030, which calls for ADB to increase financing for agribusiness and promote gender equality in at least 75% ADB committed operations (by number) by 2030._The project is aligned with the Operational Plan for Private Sector Operations, 2019 to 2024, which calls for working with tier 1 agribusinesses because of the potential widespread impact; consistent with ADB country partnership strategies for Bangladesh, India, Indonesia, Nepal, Pakistan, and Viet Nam; and is aligned with the International Financial Institution Action Plan to Address Food Insecurity (goal 2), which calls for agribusiness lending for staple food working capital and liquidity. The project is consistent with Strategy 2030 operational plans for operational priority (OP) 1: addressing remaining poverty and reducing inequalities, by supporting smallholder farmer livelihoods; OP 2: accelerating progress in gender equality, by supporting women workers and farmers; OP 5: promoting rural development and food security, by helping to integrate farmers, agribusinesses, and consumers into efficient value chains. As a regional project supporting cross-border trade benefiting six DMCs, it is consistent with OP 7: fostering regional cooperation and integration. |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for environment. Annual environment and social performance reports will be submitted to ADB to monitor compliance. |
| Involuntary Resettlement | ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for involuntary resettlement. Annual environment and social performance reports will be submitted to ADB to monitor compliance. |
| Indigenous Peoples | ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for indigenous peoples. Annual environment and social performance reports will be submitted to ADB to monitor compliance. |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | - |
| Credit Committee Meeting | - |
| Approval | 13 Dec 2022 |
| Last PDS Update | 13 Dec 2022 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Olam Global Agri Food Security Support: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Oct 2022 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
| Title | Document Type | Document Date |
|---|---|---|
| Olam Global Agri Food Security Support Project: Environment and Social Due Diligence Report | Safeguards Due Diligence Reports | Nov 2022 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.