The syndicate of UniCredit International and Raiffeissen Bank International, coordinated by Royal Bank of Scotland, which all together acted as joint arrangers and bookrunners of the deal, provided a senior secured long-term loan to Milkiland N.V.
The syndicated facility amounts to USD 100 million with the 4-years maturity, and aimed at refinancing of existing loans of Milkiland Group, as well as supporting of further development of the Company’s business. The loan can be utilized by Milkiland in parts, during availability period of 9 months.
Comment by Anatoliy Yurkevich, Chairman of the Board of Directors, Milkiland N.V.:
“The successful closure of a syndicate loan facility deal in existing unfavorable market conditions is a clear evidence of financial stability and investment attractiveness of Milkiland. The utilization of this loan will support our development plans, both organic and through M&A. In addition, our Group will benefit from lower interest rate compared to existing loans.
Meanwhile, we carefully evaluated the risks related to this facility, including foreign currency exchange risks. We are confident that our competitive advantages, first of all the Milkiland’s status as a leading Ukrainian cheese exporter, will represent a natural hedge against possible local currency devaluation. In addition, a prolonged availability period provides Milkiland with flexibility in managing of currency risks. ”
About Milkiland N.V.
Milkiland is a TOP-5 diversified dairy producer operating in Russia and Ukraine offering a wide range of dairy products such as fresh dairy, cheese, and butter, to satisfy consumers in their everyday needs for healthy and tasty foods.
In Russia, the company produces fresh dairy products at Moscow-based OJSC “Ostankino Milk Combine” and sells under Ostankinskaya brand. Also, Dobryana Ukrainian cheese is sold in many Russian cities, including Moscow, St. Petersburg, Voronezh, Nizhniy Novgorod, Saratov, Kaluga, Chelyabinsk, Orel, Ekaterinburg, Omsk, and Kaliningrad.
In Ukraine, the company controls 10 plants producing wide range of dairy products. Its cheese, fresh dairy products and butter are widely available across all Ukrainian cities under brands Dobryana and Kolyada. Milkiland exports dairy products from Ukraine to over 30 countries.
The revenue of the company in the year 2010 was EUR 258mn, net profit EUR 22mn.
Milkiland N.V. is a Dutch holding company controlling the Group. DE “Milkiland Ukraine” is its 100% subsidiary controlling the business of the Group in Ukraine. Shares of Milkiland N.V. have been listed on the Warsaw Stock Exchange since December, 6, 2010.
For more information please contact:
Sergey Trifonov, IR Officer of Milkiland N.V.
tel. + 380 67 327 9838