Fonterra's 300 million yuan (about NZ$56 million) bond issue, which was nearly six times oversubscribed, will pay investors' interest of just 1.1% per annum.
The dairy cooperative's offer, of Chinese yuan deliverable in Hong Kong denominated bonds (CNH), opened on Friday.
Stephan Deschamps, Fonterra's Treasury general manager, said the issue was almost six times oversubscribed and was priced at 1.1% per annum, the lowest coupon achieved yet for an international corporate issue in the CNH market.
The three-year bonds mature in June 2014.
“The strong interest in this issue demonstrates international investors’ recognition of Fonterra’s financial strength,” Deschamps said.
“China is an increasingly important market for Fonterra and the CNH market is likely to grow as companies seek funding for their investments in this rapidly growing economy.”
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