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On 19 June 2018, the Nordic Investment Bank (NIB) and Danish Crown A/S signed a loan agreement having a total value of EUR 100 million (approx. USD 116 million). The loan will support the company's acquisition of the Danish company DK-Foods, a pepperoni producer. Notably, the acquisition was completed in May 2018. The maturity of the loan is 7 years.
According to the NIB, the acquisition will support: "Danish Crown’s strategy to become a global leader in canned products, snacks and other profitable segments in food service." Notably, the loan also supports the Danish company's acquisition of a Polish company as well as the construction of a meat processing plant in China, see related intervention.
Danish Crown A/S has its headquarters in Denmark with 14 offices worldwide. The company is a meat processing company providing various meat products of pork or beef including fresh packaged meats. According to the company, the Group is the largest pork exporter in the world "selling pork cuts in more than 80 countries worldwide."
The NIB is an international financing bank and is jointly owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank provides financing to private and public projects mainly located in the eight countries at attractive conditions. The eligibility criteria of NIB financing is that: "All projects financed by NIB should improve competitiveness and/or the environment, in accordance with NIB's mandate and eligibility criteria. Furthermore, outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries."
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