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

"Our" business?

OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.

Farmers' call

OPINION: Fonterra's $4.22 billion consumer business sale to Lactalis is ruffling a few feathers outside the dairy industry.

Wasted energy

OPINION: Finance Minister Nicola Willis could have saved her staff and MBIE time and effort over ‘buttergate’ recently by not playing politics with butter prices in the first place.

Featured

Rural contractors call for overhaul of ag vehicle rules

Following a recent overweight incursion that saw a Mid-Canterbury contractor cop a $12,150 fine, the rural contracting industry is calling time on what they consider to be outdated and unworkable regulations regarding weight and dimensions that they say are impeding their businesses.

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

National

Machinery & Products

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Buttery prize

OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…

Gene Bill rumours

OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter