19 Jun 2011

Fonterra sets sights on yuan bond market

1:30 pm on 19 June 2011

Fonterra plans to become the first New Zealand or Australian firm to tap the Hong Kong yuan bond market.

The dairy giant hopes to raise 300 million Chinese yuan - or $56 million - by issuing renminbi bonds.

Fonterra's treasury general manager, Stephan Deschamps, says the bond issue is similar to ones it has previously run in Europe, and will diversify the dairy giant's funding.

He says there were bids for three to four times the amount of bonds available on Friday, and the issue should close on Friday night.