Paper and packaging group Jefferson Smurfit has added €200 million (£158 million) to an existing €600 million syndicated loan facility dating from 1994.

The company's chief financial officer, Mr Ian Curley, said yesterday that the basic purpose of the new five-year arrangement was to refinance the existing €600 million loan, the group's main banking facility.

The additional €200 million was offered by Jefferson Smurfit bankers, rather than sought by the company, Mr Curley said, referring to the availability of extra money as "a good sign of confidence". He said that the new loan would provide more "firepower" should the company wish to engage in any acquisitions over the next five years.

The loan being refinanced had been arranged during a period of acquisitions during the mid-1990s. The new loan has been negotiated at 45 basis points above the interbank rate.

The lead arrangers of the facility are BNP Paribas, Deutsche Bank and JP Morgan.

However, AIB Capital Markets and Bank of Ireland International Finance have also participated in the financing.

Thirteen banks in total have signed into the loan document.