19 Dec 2008

Fonterra plans to raise funds with bond issue

1:09 pm on 19 December 2008

The Fonterra dairy co-operative is considering going to the financial markets to raise $300 million.

It is proposing an offer of senior retail or long-term bonds in February and plans to use the money for working capital and other general business purposes.

Fonterra's Treasury general manager Stefan Deschamps said it provides an opportunity for investors who are not farmer shareholders to invest in the business.

He said it is a part of the co-operative's normal funding requirements and the company has done a number of wholesale bond issues in the past.