FDBusiness.com

Ornua Signs New €610 Million Bank Facility to Support Continued Dairy Industry Growth

 Breaking News
  • UK Bottled Water Sales Top 4 Billion Litres For First Time Last year’s hot summer boosted UK water drinks consumption by more than 7% to 4,267 million litres, according to a new report from food and drink experts Zenith Global. This was worth an estimated £3.330 billion at retail prices. Sales of plain bottled water in retail packs increased by 7.9% to 3.4 billion litres, whilst [...]...
  • Morrisons Signs Up to Arla UK 360 Farm Standards Programme Arla Foods’s new farming standards programme Arla UK 360 continues to gain traction as Morrisons becomes the first retailer to commit to supporting the standards across its entire Arla milk supply. The move means approximately 200 Arla farmer owners will be directly supported by Morrisons to deliver across the eight farm business areas identified in [...]...
  • Vitafoods Europe 2019 – Guiding the Industry to a More Sustainable Future As environmental awareness reaches new heights and the world’s population continues to rise, the issue of providing sustainable foods which also offer a high nutritional value is set to grow, in both importance and complexity, over the next decade. It is with these considerations in mind that Vitafoods Europe 2019 has developed its agenda. The [...]...
  • Nordzucker to Invest €100 Million in Swedish Sugar Production Nordzucker Group will concentrate its sugar production in Sweden at its factory in Örtofta and as part of this process the refinery at Arlöv will be closed. Around €100 million will be invested in the strategy. The project is expected to be completed in autumn 2021. Based at Braunschweig in Germany, Nordzucker Group is one [...]...
  • FrieslandCampina Plans to Build a Sustainable Dairy Processing Plant International dairy co-operative Royal FrieslandCampina is exploring options to build a sustainable and innovative dairy processing plant in the Netherlands. The plant is intended for the processing of member milk into fresh dairy products, ingredients used for the production of early life and adult nutrition, and for cheese manufacturing. It would be built according to [...]...

Ornua Signs New €610 Million Bank Facility to Support Continued Dairy Industry Growth

Ornua Signs New €610 Million Bank Facility to Support Continued Dairy Industry Growth
December 20
09:34 2017

Ornua, the largest exporter of primary Irish dairy products with annualised sales of about €2 billion across 110 countries, has secured new five-year syndicated bank facilities of €610 million, replacing its existing €420 million syndicated bank facilities from February 2014. The new facilities will extend to November 2022, and Ornua’s early refinancing of the existing facilities took advantage of positive bank market conditions.

The refinanced facilities comprise of two distinct parts:

* €260 million committed syndicated Revolving Credit Facility (“RCF”) (including €60 million of ancillary facilities) to fund Ornua’s own working capital requirements and its international growth strategy.

* €350 million committed syndicated Reverse Invoice Discounting Facility (“RID”) to fund the working capital requirements of Ornua’s members suppliers, Ireland’s dairy processors.

In addition, a further €100 million is available, if required over the five-year period, under the facilities (€50 million under the RCF and €50 million under the RID), by way of an uncommitted tranche of funding, which would bring the total RCF to €310 million and the total RID to €400 million.

The participant Banks remain the same as under the previous facilities: Allied Irish Banks; Bank of America Merrill Lynch; Barclays; HSBC; Rabobank; Ulster Bank.

Donal Buggy, group finance director at Ornua, comments: “The successful refinancing ensures that Ornua retains access to the banking liquidity it needs to continue implementing our strategic five-year growth plan ‘Ornua 2021’ following the removal of milk quotas in 2015, and delivering strong product price returns for Irish dairy farmers. Not only does it strengthen our capital structure, but it also provides continued working capital support to our member suppliers and ultimately the dairy community across Ireland. It is particularly pleasing that we have retained the same group of Irish and international banking partners, and we note that the deal was significantly over-subscribed demonstrating their continued support for Ornua and the Irish dairy industry.”

Ornua has continued to deliver strong growth in international markets in 2017 across its Ornua Foods and Ornua Ingredients divisions.  Highlights include the launch of Kerrygold butter into the South Korean market, the opening of an Innovation Centre in Chicago, Illinois, the launch of Kerrygold cheese in Singapore, the acquisition of F.J. Need Limited, a UK-based cheese ingredients company and the announcement of a supply partnership with EasiYo, a fresh yogurt brand from New Zealand.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

Jobs: Finance

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements