The new facility will extend to December 2026 and incorporates sustainability key performance indicators that address emissions, waste and diversity targets.
The refinanced facility comprises of two distinct parts: €200m ($225m) committed syndicated revolving credit facility (RCF) to fund Ornua’s working capital requirements and its global growth strategy via strategic capital investment and acquisition; and €380m ($428m) committed syndicated reverse invoice discounting facility (RID) to fund the working capital requirements of Ornua’s member suppliers, Ireland’s dairy processors.
In addition, a further €100m ($112.6m) is available, if required over the five-year period, under the facility (€50m/$56.3m under the RCF and €50m under the RID), by way of an uncommitted tranche of funding, which would bring the total RCF to €250m ($281m) and the total RID to €430m ($382m).
The participant banks are: Allied Irish Banks p.l.c (acting as RCF agent), Bank of Ireland, Bank of America - Europe, HSBC Continental Europe (acting as RCF sustainability coordinator), Rabobank Dublin (acting as RID sustainability coordinator & agent) and BayernLB.
Donal Buggy, group finance director, Ornua, said, “The successful refinancing ensures that Ornua retains access to the banking liquidity it needs to deliver strategic growth initiatives and strong product price returns for our members and Irish dairy farming families.
“Not only does the €580m facility strengthen our capital structure, but it also provides increased working capital support to our members and ultimately the dairy community across Ireland. We are very pleased that the deal was again over-subscribed – a clear indicator of our banking partners continued support of Ornua’s ambitious growth strategy.”