Irish dairy co-operative Ornua has secured a new five-year syndicated bank facility of €580m.
The Kerrygold owner said the new facility will extend to December 2026 and incorporates sustainability key performance indicators that address emissions, waste and diversity targets.
The banks taking part include AIB, Bank of Ireland, Bank of America - Europe, HSBC Continental Europe, Rabobank Dublin and Bayern LB.
The refinanced facility comprises of two distinct parts. The first is a €200m committed syndicated Revolving Credit Facility to fund Ornua's working capital requirements and its global growth strategy via strategic capital investment and acquisition.
The second is a €380m committed syndicated Reverse Invoice Discounting Facility to fund the working capital requirements of Ornua's member suppliers - Ireland's dairy processors.
Ornua said a further €100m is available, if required over the five-year period.
Donal Buggy, Group Finance Director of 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 its 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," Mr Buggy said.
"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," he added.
