The Irish dairy cooperative Ornua has secured a new five-year syndicated bank facility of 580 million euros.
The owner of Kerrygold said the new facility will run through December 2026 and incorporate sustainability key performance indicators that address emissions, waste and diversity targets.
Participating banks include AIB, Bank of Ireland, Bank of America – Europe, HSBC Continental Europe, Rabobank Dublin and Bayern LB.
The refinanced facility has two distinct parts. The first is a committed revolving syndicated credit facility of â¬ 200 million to finance Ornua’s working capital needs and its global growth strategy through strategic investments and acquisitions.
The second is a committed syndicated reverse invoice discount facility of â¬ 380 million to finance the working capital needs of Ornua member suppliers – the dairy processors of Ireland.
Ornua said an additional 100 million euros were available, if needed over the five-year period.
Donal Buggy, Ornua Group CFO, said the successful refinancing ensures that Ornua retains access to the bank liquidity it needs to implement strategic growth initiatives and strong product price returns. for its members and the families of Irish dairy farmers.
âNot only does the EUR 580 million facility strengthen our capital structure, it also provides increased working capital support to our members and ultimately the dairy community across Ireland,â said Mr. Buggy.
“We are very pleased that the transaction has been oversubscribed again – a clear indicator of the continued support of our banking partners to Ornua’s ambitious growth strategy,” he added.