Fonterra raises $230m in dim sum bond to fund Beingmate investment
The five-year bond, which is priced in yuan but issued outside China to tap international investors, will carry a 4% coupon.
Fonterra Cooperative Group [NZX: FCG], the world's largest dairy exporter, sold its third dim sum bond, raising one billion Chinese yuan, or $230 million, with the proceeds helping fund the stake in Beingmate Baby & Child Food.
The five-year bond, which is priced in yuan but issued outside China to tap international investors, will carry a 4% coupon, the Auckland-based company said. The cash will be partially used to fund Fonterra's 20% stake in the Chinese infant formula maker, worth $615 million when the dairy company bought in and now valued at 3.67 billion yuan ($846 million).
Strong demand for the issue saw Fonterra get the deal done quickly and at a cheaper price than the original coupon, which was set to be 4.125%, a source close to the offer told BusinessDesk.
This is the third dim sum bond Fonterra has issued. The first was a 300 million yuan three-year bond sold in 2011 and Fonterra raised 1.25 billion yuan, approximately $250 million, selling five-year debt in January 2014.
In April, the dairy giant raised $350 million from a six-year kiwi bond offer, which pays annual interest of 4.33% and trades on the NZX debt market. It said at the time it attracted $100 million in over-subscriptions.
HSBC Bank, which managed its other dim sum issues, was the global coordinator for the issue and joint book runner with MUFG and Societe Generale.
(BusinessDesk)
Suze Metherell
Tue, 16 Jun 2015
Tue, 16 Jun 2015
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Fonterra raises $230m in dim sum bond to fund Beingmate investment
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