Fonterra sets minimum rate for six-year bonds
The $300 million offer opens on February 9 and closes on March 6, with Fonterra retaining the right for unlimited oversubscriptions, it said in a statement today. The final interest rate paid will be set on March 9 at the higher of either 7.75% or the six-year swap rate plus 3.4%.
The bonds “offer gave retail investors the opportunity to earn an attractive yield on a fixed-rate investment backed by the company very much at the heart of New Zealand’s dairying industry,” chairman Henry van der Heyden said.
Fonterra is “in a position to capitalise on the expected long-term growth in demand for quality dairy products in emerging and established economies around the world.”
Fonterra joins companies including Fletcher Building in tapping demand for fatter yields as interest rates slide. The nation’s biggest construction company in November offered $100 million of 2014 and 2016 notes offering 9% annual interest.
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