Fonterra's RENMINBI Bond issue closes heavily over subscribed

Fonterra has successfully raised 300 million yuan (approximately US$42 million or NZ$56 million) through an issue of CNH (Chinese yuan deliverable in Hong Kong) denominated bonds.

As previously announced, the offer opened on Friday.

General Manager Treasury Stephan Deschamps said the issue was almost six times oversubscribed when the decision was made to close the bidding process and was priced at 1.1% per annum, the lowest coupon achieved yet for an international corporate issue in the CNH market.

The bonds have a three-year term and mature in June 2014.

“The strong interest in this issue demonstrates international investors’ recognition of Fonterra’s financial strength,” Mr Deschamps said.

“China is an increasingly important market for Fonterra and the CNH market is likely to grow as companies seek funding for their investments in this rapidly growing economy.”