Dairygold has negotiated lower cost loan and credit facilities for its Milk Suppliers with both Bank of Ireland and AIB Bank.
The loan and credit options, negotiated and agreed, by Dairygold with the two banks are designed to support Milk Suppliers’ growth and expansion ambitions and to assist with the cash flow challenges in the dairy sector due to a lengthy period of poor dairy market returns.
- The new loan and credit facilities will be available to Dairygold Milk Suppliers, from September 1, 2016.
- The loan and credit facilities to be provided differ between the two banks involved but both are offering financing options at discounted variable rates of as low as 4.1% for SBCI eligible loans or 4.5% for non-qualifying SBCI loans.
- In addition, a credit line facility is available at less than 4% to Milk Suppliers.
- The funding is available for the ongoing development and expansion of farm enterprises, including land purchase, capital investment, stock purchases and working capital for farm inputs.
- Dairygold is not providing financial advice or making any recommendation or offer to its Milk Suppliers to avail of the financing options.
- Any loan facility will be granted at the discretion of the Banks involved.
- Dairygold is not underwriting or guaranteeing the facilities in any manner.
- The variable rate facilities and the interest rate on the loans may fluctuate in accordance with movements in the respective banks’ overall financing costs.
- The discounted interest rates offered by Bank of Ireland and AIB on these loan products differ and it is up to individual Milk Suppliers to decide which is most appropriate for their needs.
Dairygold says it will communicate with its Milk Suppliers in the coming weeks, advising them of the full details, the options available and the next steps to avail of these very competitive Milk Supplier loan and credit facilities.
The granting of loans and credit facilities by Bank of Ireland and AIB Bank will be subject to both banks’ standard credit approval processes and borrowing terms and conditions at all times.
The move by Dairygold comes in the wake of Glanbia launching its new €100m ‘MilkFlex Fund’.
Making the announcement Dairygold Chairman, James Lynch, commented that the co-op is very pleased to announce these new facilities.
He said the facilities, at very competitive rates, reflect the strong business relationship the Society has with the two Banks and the commitment of the Society has to support its Milk Suppliers," he said.
Meanwhile, discussing the new Bank of Ireland DairyFlex facility, Sean Farrell, Head of Agriculture at Bank of Ireland Business Banking said as the largest lender to the Irish economy, and the bank which is providing more than 50% of new lending to the agri sector, it is delighted to build on our existing relationship with Dairygold while supporting their Milk Suppliers’ cash flows and funding farm development plans.
"We understand that farmers require support and flexibility, and that many dairy farmers have invested significantly in facilities and stock in recent years and through financial support such as DairyFlex, as developed with Dairygold, they can continue to develop their businesses.”
Noreen Lacey, AIB National Agribusiness Development Manager, said AIB Bank is delighted to support and assist Milk Suppliers during this challenging time for the Dairy Sector.
"We would encourage early contact so as to identify the most appropriate solution for individual circumstances”.