Fonterra processes around 90 per cent of the country's milk supply and is owned by around 10,500 dairy farmer shareholders.
Fonterra processes around 90 per cent of the country's milk supply and is owned by around 10,500 dairy farmer shareholders.
KEY POINTS:
Dairy exporter Fonterra Co-operative Group Ltd has set preliminary terms on a $300 million 6-year bond issue.
The issue, primarily targeted at retail investors, will offer the higher of a 7.75 per cent coupon or 340 basis points over the swap rate on March 9.
ANZ and Bankof New Zealand are jointly leading the offer.
Fonterra will hold "debt roadshows" next week and has said it will use the proceeds for general purposes.
The issue, rated A+ by Standard and Poors and AA- by Fitch, will also accept an unlimited amount of oversubscriptions.
Fonterra is unlisted but is the nation's largest company and controls about a third of the world's dairy export trade. It generates more than 7 per cent of New Zealand's gross domestic product.
