Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra Issues Renminbi Bond to Support China Growth

Fonterra Issues Renminbi Bond to Support China Growth


Fonterra Co-operative Group Limited announced today it has raised 1.25 billion Chinese renminbi (approximately NZD250 million) through a 5 year “dim sum” bond issue (Chinese renminbi raised offshore) as part of its ongoing commitment to developing its China business.

Fonterra Chief Financial Officer, Lukas Paravicini, said the funds raised from the dim sum bond issue will be used to further strengthen and support the growth of Fonterra’s businesses in China.

“Along with refinancing some of our existing China operations, we will also be using funds to support further growth in this market. This will include the further expansion of our consumer, foodservice and farming operations,” he said.

Fonterra President Greater China & India, Kelvin Wickham, said the co-operative has had a strong focus on driving growth in both volume and value as it develops its integrated business model in China.

“Last year we successfully launched our premium milk brand, Anchor, and also launched a new paediatric formula product specially tailored for the China market under the Anmum brand.

“At the same time China is expected to see a continued gap between the demand and supply of raw milk so our farming business will continue to build supplies of quality raw milk to meet local consumer demand.

“Our well-established foodservices and ingredients businesses, which import quality products from New Zealand, are also expecting to see continued growth in the coming years.

“The renminbi bond issue will support the growth of our whole business, and in particular our consumer brands business which are a key focus for growth given it is at an earlier stage of development,” Mr Wickham said.

Mr Paravicini added that the decision to issue the dim sum bonds is part of Fonterra Treasury’s diversified funding strategy. This comprises a combination of bank facilities and debt capital market bonds, which currently includes bonds denominated in New Zealand Dollars, Australian Dollars, US Dollars, Renminbiand Sterling.

“The dim sum bond market has continued to develop strongly over recent years and provides an attractive opprotunity for us to raise long term renminbi funding that matches our businesses in China. As this funding market and our business in China develop further, it makes sense to seek a greater alignment between our treasury borrowing and our business activities,” Mr Paravicini said.

This is the second time Fonterra has issued bonds denominated in Chinese renminbi. The first time was in 2011 when it became the first Australasian company to tap the dim sum market.
- ENDS –

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news