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

 


Fonterra raises 1.25 bln renminbi in second ‘dim sum’ bond

Fonterra raises 1.25 bln renminbi in second ‘dim sum’ bond

By Paul McBeth

Jan. 21 (BusinessDesk) - Fonterra Cooperative Group, the world’s biggest dairy exporter, has raised 1.25 billion renminbi in its second Chinese currency denominated bond, which it will use to repay debt and expand operations in the world’s second-biggest economy.

The five-year bonds pay annual interest of 3.6 percent, and were bought by global investors “with strong support from Asia,” chief financial officer Luke Paravicini said in an emailed statement to BusinessDesk. Fonterra wants to diversify its funding strategy with a view to better align borrowing with the company’s business activities.

“We were very pleased with the level of support,” Paravicini said. “It was significantly over-subscribed.”

The funds will be used to refinance its some of its existing Chinese operations, and to support growth in the Chinese market, expanding Fonterra’s consumer, foodservice and farming businesses.

Fonterra first entered the so-called ‘dim sum’ bond market in 2011, selling 300 million renminbi of three-year bonds which were six times oversubscribed paying annual interest of 1.1 percent. At the time, Fonterra said that was the lowest coupon achieved for an international corporate issue of Chinese currency deliverable in Hong Kong. The bonds mature in June this year.

Kelvin Wickham, Fonterra president Greater China & India, said the bond issue will support growth of the whole business, and consumer brands in particular, “which are a key focus for growth given it is at an earlier stage of development.”

Units in the Fonterra Shareholders’ Fund, which gives investors exposure to the company’s dividend stream, were unchanged at $5.70 today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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