Fonterra plans bond offer

Fonterra Co-operative Group Limited announced today it is considering making an offer of senior unsecured bonds. The offer is expected to open in February/March 2010.

The issue will be for a maximum of NZD 250 million. Fonterra will mandate ANZ, part of ANZ National Bank Limited; BNZ; and Westpac Institutional Bank, a division of Westpac Banking Corporation, as Joint-Lead Managers.

No money is currently being sought and no applications for securities will be accepted or money received unless the investor has received a simplified disclosure prospectus.

Further details of the offer will be made available once a simplified disclosure prospectus is available prior to the offer launch.

Fonterra intends to use any money raised for general business purposes, including partial replacement of a €300 million Euro Medium Term Note (EMTN) maturing in April 2010.

The bond offer is distinct from the current offer for Fonterra’s farmer shareholders to buy additional shares in the Co-operative.