FDBusiness.com

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

 Breaking News
  • Carlsberg Group Increases Ownership of Super Bock Group in Portugal The Carlsberg Group has acquired 28.5% of the shares in Viacerm which is the controlling shareholder of Super Bock Group, holding 56% of the shares. The other 44% of the shares in Super Bock Group are owned by Carlsberg. Super Bock Group is the market leader in Portugal, holding a market share of 47% with a [...]...
  • UK Restaurant Numbers Fall 2% in a Year The number of restaurants in Britain slipped by 2.0% over the year to September 2018, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals – equivalent to more than 10 closures a week. The exclusive research shows that Britain had a total of 26,892 restaurants at September. The net fall of 539 [...]...
  • ABP’s Olleco on Shortlist For Davos Sustainability Award ABP Food Group’s renewable division, Olleco, has been shortlisted for a prestigious ‘Circular’ sustainability award for its development of a circular economy model with McDonald’s and Arla Foods in the UK. The awards are an initiative of the World Economic Forum and the Forum of Young Global Leaders and winners will be announced at the [...]...
  • Arla Foods Acquires Middle East and Africa Kraft Branded Cheese Business From Mondeléz International European dairy co-operative Arla Foods has reached an agreement with US-based international confectionery, food, and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. The acquisition also gives Arla full ownership of a state-of-the-art cheese production site in Bahrain, which provides [...]...
  • UK Grocery Market Growth Cools as Christmas Nears Despite retailers and shoppers getting into the festive spirit, the latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 2 December 2018, show the sector is now growing at 2.0% – its slowest rate since March 2017. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, comments: “Consumers are benefiting [...]...

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