Fonterra today announced a firm allocation of NZ$800 million to NZX participants and institutional investors for the company's offer of senior unsecured bonds which opens on Monday, February 9 after receiving applications significantly in excess of this amount. There will be no public pool reports Scoop. Fonterra CEO, Andrew Ferrier, said the company was very pleased with the strong response to the offer from such a wide range of NZX primary market participants and institutional investors. The $800 million offer "“ an oversubscription of 267% of the original benchmark announced by Fonterra earlier this week "“ is for a six-year maturity, paying a minimum coupon of 7.75% per annum. "We've had a great response from the NZinvestor base, which reflects the confidence people have in Fonterra and our business." But bloggers on https://www.interest.co.nz/blog are unconvinced that raising more debt in todays climate is a positive sign!! South Canterbury Finance Ltd.'s 8% bonds were snapped up without the need for a public pool, raising NZ$100 million including oversubscriptions. The finance company sold the bonds "within days of its opening" on Dec. 2, chief financial officer Graeme Brown said. The bonds mature on Oct. 8, 2010, with the option to extend a further 12 months should the Deposit Guarantee Scheme be extended. Brown said demand for the debt "provides a further endorsement of South Canterbury Finance's sound ï¬nancial position and its standing as one of the leading ï¬nance companies in NZ"
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