Olam International has issued US $250 million ($337 million) in unsecured bonds, the commodities producer said over the weekend in a statement on the Singapore Exchange.

According to Olam, this is the first UNrated offering of US -dollar denominated bonds by a Singapore issuer in the international bond market.

It added that the bonds have a maturity of 10 years, which provides Olam with long-term financing.

In line with the pricing guidance, the bonds bear a 7.5 per cent coupon.

Olam said it will use the net proceeds of the bond issue for capital expenditure and the financing of potential acquisitions.