Origin Enterprises announces credit facility to support sustainability strategy

Origin Enterprises has announced the agreement of a new, five-year €440 million revolving credit facility, which incorporates performance targets that are aligned with the group’s sustainability strategy.

This facility, which represents a €40 million increase over the previous credit line, extends until 31 January 2030, and includes options for two one-year extensions, as well as a further €100 million uncommitted loan facility.

Dublin-headquartered Origin Enterprises, which champions sustainable land use through technically-led solutions, said that the facility will enhance its ability to achieve its strategic goals.

‘Financial flexibility’

“This larger facility, which now extends to 2030, provides Origin both the financial flexibility and capacity to deliver our strategic objectives, aligned with our sustainability targets,” commented Colm Purcell, chief financial officer. “We welcome the participation of existing banking partners and new lenders in the syndicate group.”

The facility is provided by a syndicate of seven lenders, including Allied Irish Banks, Bank of China, Bank of Ireland, Citibank, HSBC, ING, and Rabobank, with Allied Irish Banks acting as the sustainability co-ordinator, and Bank of Ireland serving as agent.

Origin Enterprises is set to announce its first-half results on 4 March.

First-quarter performance

In its first quarter, the group announced revenues of €469.4 million, a decline of 11.8% compared to €532.5 million in the same period a year earlier. The decrease was largely driven by a 14.2% drop in revenue from its Agriculture segment, which saw volumes 8.1% lower. However this was partially offset by a 24.8% increase in revenue from the Living Landscapes business.

Its Agriculture segment was impacted by planting delays in the UK and Ireland caused by persistent rainfall, as well as adverse weather conditions in Romania and Brazil. It added that it expects the situation to improve in Q2, however.

Elsewhere, Origin Enterprises completed a €20 million share buyback programme during the first quarter. Read more here.