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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news