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

 

Fonterra Capital Notes Offer Opens Today

Fonterra Co-operative Group Ltd's NZ$200 million Capital Notes Offer opens today, offering an opportunity for non-dairy farmers to invest with New Zealand's largest company and biggest export industry. The Capital Notes are being offered under an Investment Statement dated 25 October 2001.

Graham Stuart, Fonterra's Chief Financial Officer, said the Capital Notes offer "an initial interest rate significantly return above the risk-free rate and a solid credit rating, and as such they are should be an an extremely attractive proposition to a wide range of investors".

The Capital Notes will have an initial minimum interest rate of 7% through to 10 July 2002, at which date the rate is reset and thereafter reset annually to a margin over the 12 month Government Stock rate. At the current Standard & Poors credit rating of A+ for the Notes, this margin is 1.7%. More detailed information is described in the Investment Statement.

"The Notes should offer ongoing security and stability of performance in so much as the margin payable is linked to the the Notescredit rating," Mr Stuart said. "Liquidity is afforded by the company and shareholders of the company as well as the investor community."

A series of presentations on the Offer have been made to NZSE Member Firms and Advisers of the Lead Managers throughout the country, and have been met with a very positive response.

The Offer opens on 5 November and closes on 28 November unless fully subscribed earlier. The principal amount of Capital Notes an individual investor can apply for, is $5000 and in multiples of $1000 thereafter.

The Lead Managers for the Offer are ABN AMRO Craigs, Forsyth Barr/Forsyth Barr Frater Williams and Westpac Institutional Bank.

The Fonterra Capital Notes Offer provides an opportunity for the public to invest in the dairy industry without conferring any ownership rights. Ownership of Fonterra remains restricted to New Zealand dairy farmers in proportion to supply. The Fonterra Capital Notes provide a mechanism for exiting shareholders to receive fair value for their stake in the business. The use of Capital Notes for shares surrendered by dairy farmers allows optimal management by Fonterra of its capital resources on an ongoing basis.

Fonterra Co-operative Group Ltd has shareholders' equity of NZ$5 billion, partially funding more than NZ$12 billion in assets, which generate revenues of in excess of NZ$14 billion per annum. With employs nearly 20,000 staffpeople, who and manufactures and markets dairy products to customers in 120 countries around the world. Fonterra generates more than 20 percent of New Zealand's export earnings and more than 7 percent of its GDP.

Application has been made to the New Zealand Stock Exchange for permission to list the Capital Notes and all the requirements of the Exchange relating thereto that can be complied with on or before the date of this announcement have been duly complied with. However, the Exchange accepts no responsibility for any statement in this announcement.

END


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>


Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>



Psychic Ventures: US Consumer Spending On Video Games Jumped By 42% In Jan 2021

On a global scale, there was a 15% increase in digital games revenue in January 2021, pushing the total to $11.6 billion.
In the US, gaming revenue rose to an impressive high during the month thanks to the new generation of consoles. ... More>>

OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>


Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>