HSBC leads £240m fund for Kent’s Westfalia Fruit Group
Westfalia Fruit Group, the world’s leading avocado supplier headquartered in Kent, is set to receive £240 million from a trio of banks led by HSBC UK.
The funding comes as a way of bolstering the company’s international growth and will be used to facilitate potential investments and working capital. Westfalia fruit group plans to expand its sustainable avocado production at its existing packaging, ripening, and storage facilities whilst simultaneously exploring new market avenues.
HSBC UK acted as Mandated Lead Arranger and Documentation Coordinator on the refinance, with each lender increasing their participation to £80million in Westfalia’s new £240m revolving credit facility.
Head of Large Corporate Coverage at HSBC UK Danny Goldblum said: “We’re pleased to have delivered a bespoke solution to meet Westfalia’s specific requirements demonstrating our strong capabilities to lead and coordinate across different teams.
‘’The global fresh fruit market is expected to grow by 5.53 per cent annually, and this funding will help to meet rising demand and grow the global agriculture sector, providing new jobs across Africa, South America and India. We also look forward to seeing the business continue its sustainability efforts and meet its net zero targets in 2030.”
As part of its strategy to become carbon neutral by 2030, Westfalia will continue to introduce climate-smart growing techniques that conserve energy and water and reduce pesticide use. Westfalia will also use drought and disease-resilient varieties to address the impact of climate change.
Group Chief Executive Officer at Westfalia Fruit Group Alk Brand said: “This investment will enable Westfalia to continue to grow its business, strengthen value chains to sustainably produce and source quality avocados, and improve access to export markets to meet the growing demand for the fruit.
“The partnership with HSBC UK, IFC and Standard Bank will contribute to our efforts to enhance sustainable farming practices, create jobs in the communities where we operate, and support economic growth. I am ready for a transformational year in 2023, and I know I can count on the support of HSBC UK in the process.”
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