Story image

Fonterra mulls $250M bond sale, third issue for NZX debt market

07 Apr 2015

Fonterra Cooperative Group, the world's biggest dairy exporter, may sell $250 million of six-year bonds in what would be its third security listed on the NZX debt market.

The Auckland-based dairy company would sell the bonds, expected to mature in October 2021, to New Zealand institutional and retail investors. Proceeds would be for general corporate purposes, it said.

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

ANZ New Zealand has been hired as arranger for the sale and joint lead managers are ANZ, Bank of New Zealand 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."

Security flaw in Xiaomi electric scooters could have deadly consequences
An attacker could target a rider, and then cause the scooter to suddenly brake or accelerate.
Four ways the technology landscape will change in 2019
Until now, organisations have only spoken about innovative technologies somewhat theoretically. This has left people without a solid understanding of how they will ultimately manifest in our work and personal lives.
IDC: Top 10 trends for NZ’s digital transformation
The CDO title is declining, 40% of us will be working with bots, the Net Promoter Score will be key to success, and more.
Kiwi partner named in HubSpot’s global top five
Hype & Dexter is an Auckland-based agency that specialises in providing organisations with marketing automation solutions.
Moustache Republic expands Aussie presence with new exec
The Kiwi digital commerce partner has appointed a Sydney-based director to oversee the expansion of the company’s Australian footprint.
Epson’s new EcoTank range with two years printing per tank
With 11 new EcoTank printers that give an average user two years of printing and cost just $17.99/colour to refill, Epson is ready to change the game.
Te reo Māori goes global via language app called Drops
If you’re keen to learn a few words of Māori – or as much as 90% of the language, you may want to check out an Android and iOS app called Drops.
Reckon Group announces a steady profit in 2018
Reckon continued its investment in growth throughout the year with a development spend of $14.3 million.