By PHILIPPA STEVENSON
Non-farmers will get their first chance to invest in New Zealand's biggest company, the $12 billion dairy cooperative Fonterra, when it issues $200 million of capital notes next month.
The notes, to be offered in minimum parcels of $5000 from November 5 to 28, have an A+ Standard &
Poor's rating and will have an initial minimum interest rate of 7 per cent.
Fonterra chief financial officer Graham Stuart said the notes were a fixed-rate investment, offering an ongoing income stream at a significant margin over wholesale money market rates.
"We intend to encourage a liquid secondary market for the notes and want them to be held by investors throughout New Zealand," he said.
Shareholding in the cooperative is restricted to dairy farmers who supply it with milk.
When suppliers reduce the quantity of milk they supply to the company - or cease supplying it altogether - Fonterra intends to surrender shares for capital notes.
Investment statements will be available from brokers from November 5.
The notes will have no fixed maturity date.
