The Irish Dairy Board (IDB) confirmed today it has completed the re-financing of its existing €250 million syndicated banking facility.
The board has replaced the existing plan with a new three-year syndicated bank loan facility of €350 million, to meet domestic expansion and international growth requirements.
The new facility comprises of a €160 million syndicated loan facility to fund the board's existing requirements and a €190 million committed syndicated reverse invoice discounting facility to fund working capital requirements and provide members with an additional €50 million.
The participant banks involved in the re-financing facility are AIB, Bank of America Merrill Lynch, Barclays, HSBC, Ulster Bank and Rabobank. IBI Corporate Finance advised on the deal.
“The successful completion of this deal in the current financial environment and on competitive terms is a strong vote of confidence by the participating banks in the IDB and the Irish dairy industry," said the Irish Dairy Board's finance director Cathal Fitzgerald.
"The new facilities strengthen our capital structure and enhance the operational flexibility of the IDB by extending the maturity profile of our debt to December 2014. For our members, this unique facility is a significant step forward on the path to developing a robust funding solution to support the future development and growth of the Irish dairy sector,” he added.
The board increased its sales by 6 per cent to €1.9 billion in 2010 in a year which saw its operating surplus fall to €26.9 million from €40.2 million in 2009.
