Olam lays its ghosts to rest and reprices curve

Ghost_230
By Virginia Furness
16 Jul 2014

Olam International appeared to have shaken off any remaining investor doubts on July 16 when it priced a new Singapore dollar bond at 45bp through its existing curve. The deal marks the issuer’s first return to the bond market since an analyst report in 2012 caused a huge sell-off of its bonds and equity.

In November 2012 Carson Block, an American short seller and founder of research firm Muddy Waters, questioned Olam's accounting, investment decisions and balance sheet strength. 

After Block's report was published the borrower’s outstanding bonds experienced a massive sell-off before Temasek, the Singapore government-owned investment company, stepped in to ...

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