Fonterra Co-operative Group Ltd has reduced a planned $250 million bond sale to $150m.The dairy co-operative said today it was selling $100m worth of bonds and could raise a further $50m if it accepted over-subscriptions. This was less than the $250m bond
Fonterra Co-operative Group Ltd has reduced a planned $250 million bond sale to $150m.
The dairy co-operative said today it was selling $100m worth of bonds and could raise a further $50m if it accepted over-subscriptions. This was less than the $250m bond sale signalled on January 20.
Fonterra said the offer size was scaled back because it had been able to cover part of its financing requirements overseas at a very attractive funding cost. The offer opens on February 18 and will close on March 3. The interest rate the bonds pay will be announced on February 17.
The sale is of unsecured fixed-rate six-year senior bonds. They mature on March 4, 2016.
The minimum investment is $5000 with multiples of $1000 thereafter.
The money raised will be used for general business purposes, including partial replacement of a 300 million euro medium term note maturing in April 2010.
Fonterra has mandated ANZ, BNZ and Westpac Institutional Bank as joint-lead managers for the bond offer.
