Irish dairy cooperative, Ornua, has announced that it has secured a new five-year syndicated bank facility worth €580 million, replacing its existing 2017 facility.
The new facility will extend to December 2026 and incorporate key performance indicators focusing on sustainability that address emissions, waste, and diversity targets.
The refinanced facility comprises of two parts - a €200 million committed syndicated Revolving Credit Facility (RCF) and a €380 million committed syndicated Reverse Invoice Discounting Facility (RID).
The former will fund Ornua’s working capital requirements and its global growth strategy via strategic capital investment and acquisitions.
The latter will fund the working capital requirements of the co-operative’s member suppliers.
The refinancing facility also has the provision for an additional €100 million over the five-year period by way of an uncommitted tranche of funding, which would bring the total RCF to €250 million and the total RID to €430 million.
Allied Irish Banks p.l.c is acting as RCF Agent, while Bank of Ireland, Bank of America – Europe, HSBC Continental Europe are acting as RCF Sustainability Co-Ordinator.
Other participants include Rabobank Dublin as RID Sustainability Co-Ordinator and Agent, and BayernLB.
Commenting on the refinancing, 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 our members and Irish dairy farming families.
“Not only does the €580 million 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.”
Recently, Ornua expanded its US cheese ingredients business with the acquisition of Wisconsin-based cheese business, Whitehall Specialties.