Tuesday, 23 February 2016 08:59

Fonterra launches bond offer

Written by 
Fonterra is is offering up to $150 million of senior fixed rate bonds to institutional investors and to New Zealand retail investors. Fonterra is is offering up to $150 million of senior fixed rate bonds to institutional investors and to New Zealand retail investors.

Fonterra is is offering up to $150 million of senior fixed rate bonds to institutional investors and to New Zealand retail investors.

The offer opened with an indicative margin of 1.45 to 1.60% per annum, Fonterra said in a statement to NZX.

The bonds are expected to mature on March 7, 2023. An announcement of the actual margin and the interest rate on the bonds will be made following the bookbuild process, expected to be on February 26, 2016.

The bonds are expected to be quoted on the NZX Debt Market and are expected to be assigned a long term credit rating of A- by Standard and Poor's and A by Fitch.

There is no public pool for the offer, with 100% of the bonds reserved for institutional investors, clients of the lead manager, the co-manager and primary market participants (eg. broking firms accredited by NZX to participate in NZX markets).

Meanwhile Fonterra has also announced it has finalised the sale of its Australian yoghurt and dairy desserts business to Parmalat Australia Pty Ltd.

All conditions and regulatory requirements have been met.

On December 16, 2015, Fonterra announced the divestment of its Australian yoghurt and dairy desserts business, which includes manufacturing sites at Tamar Valley and Echuca as well as its Australian yoghurt and dairy dessert brands, as part of a comprehensive plan to return the cooperative's Australian business to strong profitability.

More like this

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Featured

Farmers Lead Sustainability Push: Woodchip bioreactor cuts nitrate runoff in Manawatu

Claims that farmers are polluters of waterways and aquifers and 'don't care' still ring out from environmental groups and individuals. The phrase 'dirty dairying' continues to surface from time to time. But as reporter Peter Burke points out, quite the opposite is the case. He says, quietly and behind the scenes, farmers are embracing new ideas and technologies to make their farms sustainable, resilient, environmentally friendly and profitable.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter