Fonterra bonds likelyThis article was originally published in Foodnews
NEW Zealand's dairy co-operative Fonterra is considering a further sale of retail bonds in the country. Chief executive Andrew Ferrier said the company was encouraged by the success of its February sale of corporate bonds (FOODNEWS 26 December 2008). Last month, it sold NZ$800 million (US$455 million) worth of six-year bonds paying 7.75%, after initially offering NZ$300 million worth. The money allowed it to re-finance shorter-term funding, extending the average maturity of its debt to 4.7 years. Fonterra also raised UK£225 million last November with a 15-year euro note.