Fonterra raises $150m locally

Fonterra says it has raised $150 million in medium-term debt from local institutions.

The group raised $50 million in six-year notes, maturing in April 2011, and $100 million in nine-year bonds, maturing in April 2014.

The six-year notes have an effective yield of 6.87 per cent and the nine-year securities will yield 7 per cent.

The issue was to refinance maturing short-term commercial paper and to maintain the group's debt maturity profile, said associate director treasury, Mark Aldridge.