Dairygold €250m banking facility to support post-quota expansion plans

Dairygold Co-Op has completed a €250m five-year banking facility with a syndicate of banks, which will support the society’s post-quota expansion ambitions.

The facility will run from 2013 to 2017 and increases the society’s existing facilities by €100m to around €250m.

Led by Bank of Ireland, the banking syndicate also includes AIB and Ulster Bank, both existing bankers to Dairygold, with two new banks coming on board — HSBC and Rabobank.

Bank of Ireland corporate banking managing director Pat Gaynor said: “Bank of Ireland was delighted to work with Dairygold in structuring the new banking syndicate to support the company’s post-quota expansion strategy.”

Dairygold chief financial officer Michael Harte added: “This five-year facility is fundamental in delivering our post-quota expansion plan.

“The plan involves a prudent and phased investment of €120m in processing capacity for 2015 to 2020 with an overall cost, including working capital and finance costs, in excess of €200m to meet the projected increase in milk production by 2020.

“We are delighted with this new agreement; it represents a strong endorsement of the financial and operational performance of Dairygold, the ambitious expansion plan for the future and complements the Member Funding Programme in delivering it.”