close
MENU
Hot Topic Hawke’s Bay
Hot Topic Hawke’s Bay
1 mins to read

Fonterra confirms $250m bond offer

Fonterra Cooperative Group [NZX: FCG], the world's biggest dairy exporter, intends selling $250 million of six-year bonds in what will be its third security listed on the NZX debt market.

Mon, 13 Apr 2015

Fonterra Cooperative Group [NZX: FCG], the world's biggest dairy exporter, intends selling $250 million of six-year bonds in what will be its third security listed on the NZX debt market.

The dairy company says the bond offer will open with an indicative margin of 0.75% over and above a base rate. The bonds are being offered to New Zealand institutional and retail investors and will mature in October 2021. (See a terms sheet for the offer here).

Proceeds of the offer are for general corporate purposes, it said.

Fonterra has $150 million of March 2016 bonds that carry a coupon of 6.83% and were last quoted at a yield of 3.9% and $35 million of perpetual notes that pay 5.59% annual interest.

ANZ New Zealand has been hired as arranger for the sale and joint lead managers are ANZ, Bank of New Zealand, Commonwealth Bank of Australia and Westpac Banking Corp. The company will release details of the bond offer next week, it said.

Last week Standard & Poor's affirmed Fonterra's A and A-1 credit ratings, with a stable outlook. S&P said the company's rating reflects its "business position as a low-cost, leading global dairy co-operative, together with the group's significant financial flexibility provided by the effective subordination of milk payments to its New Zealand supplier base."

© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Fonterra confirms $250m bond offer
46796
false