Glanbia’s MilkFlex fund is to be extended until the end of December 2017.
The Fund offers flexible, competitively priced loans to Glanbia milk suppliers with loan repayments which vary according to seasonality and movements in milk price.
Glanbia has ince its arrival on the market in May 2016, the Fund has received loan applications totalling €43 million, and has provided loans with an average value of €100,000.
Rabobank, the Ireland Strategic Investment Fund, Finance Ireland and Glanbia Co-Operative Society are co-investors in the Fund while Finance Ireland originate the loans and manage all aspects of the Fund.
The interest rate charged on the loans is a variable rate of 3.75% above the monthly Euribor cost of funds (with a Euribor floor of zero).
Henry Corbally, Glanbia Co-op chairman said: “In November, almost 90% of our GII milk suppliers completed a very detailed milk planning Census, with a large number expressing interest in applying for a MilkFlex Loan to support investments planned for 2017.
“We are very appreciative of the support of our partners - the Ireland Strategic Investment Fund, Rabobank and Finance Ireland - in agreeing to extend the Glanbia MilkFlex Fund until the end of 2017.”
The MilkFlex loans have a standard term of eight years, but may be extended by up to a maximum of a further two years when volatility triggers are enacted. The key features of the proposed loan product are:
Nobody should be surprised by the proposal unveiled by Glanbia last week. Even fewer should be surprised when it sails through the vote in the coming months. This latest step in the long goodbye between the plc and the co-op was always going to happen after the watershed vote in 2012.