Fonterra said it had established a 1.5 billion renminbi ($300 million) multi-currency bank facility with the Bank of China, which it said it would allow greater flexibility in how it funds its Chinese operations.
The co-operative said the move, which it believed was a first for New Zealand company, was a landmark agreement consistent with both organisations' commitment to building New Zealand business interests in China.
Fonterra said it provided Fonterra with greater flexibility in how it funds its Chinese operations.
The bank's New Zealand chief executive, David Lei Wang, said annual trade between New Zealand and China had almost tripled to $23 billion since the Free Trade Agreement was signed in 2008, and Chinese banking services played an important role in fostering cross-border transactions and investment.
"We see great opportunities in developing more renminbi products and tapping into China's debt capital markets on behalf of New Zealand financial institutions and government agencies," Wang said in a statement.