Fonterra has once again successfully tapped into the so-called dim sum bond market in Hong Kong by this week raising 1 billion renminbi ($230 million) through a five-year bond, priced at 4 per cent.
It is understood the funds will go towards Fonterra's purchase of an 18.8 per cent stakein Chinese infant formula company, Beingmate Baby and Child Food, which was announced last year.
It was Fonterra's third foray into the dim sum bonds - bonds issued outside China but denominated in Chinese renminbi.
HSBC was global co-ordinator and joint bookrunner for the issue.
Fonterra's first dim sum bond was a RMB300 million, three-year issue in 2011. The second was a RMB1.25 billion five-year issue in January 2014.
Fonterra's agreement with Beingmate will establish a joint venture to purchase the Darnum plant in Australia and finalise a distribution deal making Beingmate Fonterra's exclusive distributor of its Anmum brand in China.
