Chinese Funding Confirmed By Fonterra22 January 2014
NEW ZEALAND – Growth in Chinese markets will receive a 1.25 billion renminbi boost from Fonterra.
The five year ‘dim sum’ bond is the funding element behind a long-term expansion strategy for China.
Fonterra President for Greater China and India, Kelvin Whickham said the cooperative hopes to drive milk volume and value in China.
Summarising last year’s new ventures into new products, Mr Whickham said: “Last year we successfully launched our premium milk brand, Anchor, and also launched a new paediatric formula product specially tailored for the China market under the Anmum brand.”
“At the same time China is expected to see a continued gap between the demand and supply of raw milk so our farming business will continue to build supplies of quality raw milk to meet local consumer demand.”
Regarding the bonds, Fonterra’s chief financial officer, Lukas Paravicini, said: “The dim sum bond market has continued to develop strongly over recent years and provides an attractive opportunity for us to raise long term renminbi funding that matches our businesses in China.
“As this funding market and our business in China develop further, it makes sense to seek a greater alignment between our treasury borrowing and our business activities.”
TheCattleSite News Desk