Fonterra ponders new bond offer for institutions and retail investors
Chairman John Wilson said at the time those gains weren't enough to raise the forecast payout, and that global commodity prices remained volatile.
Fonterra Cooperative Group [NZX: FCG], the world's largest dairy exporter, is looking at raising an undisclosed amount of new capital through a bond offer.
The Auckland-based dairy cooperative is considering offering senior bonds to institutional and New Zealand retail investors, it said in a statement, but didn't disclose how much it would be looking to raise via the debt securities. Proceeds would be used for "general corporate purposes."
The news comes after Fonterra maintained its forecast payout to farmer shareholders for the current season at $4.70 a kilogram of milk solids, down from a record $8.40/kgMS last season, saying recent gains in whole milk powder weren't enough to warrant an increase. Whole milk powder prices have risen 45% at Fonterra's GlobalDairyTrade auctions since December after plunging last year.
Chairman John Wilson said at the time those gains weren't enough to raise the forecast payout, and that global commodity prices remained volatile. Fonterra kept its guidance for a dividend range of between 25c and 35c per share.
The bonds would be listed on the NZX Debt Market, with further details to be given at the end of the month, when Fonterra reports its first half earnings.
Units of Fonterra Shareholders' Fund, which give holders access to the cooperative's dividend stream, fell 0.8% to $5.87.
(BusinessDesk)
Suze Metherell
Thu, 05 Mar 2015
Thu, 05 Mar 2015
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Fonterra ponders new bond offer for institutions and retail investors
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