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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news