Fonterra has announced plans to raise NZ$300 million through a senior retail bond issue that will be joint lead managed by ANZ National and BNZ Capital. It has not detailed the likely interest rate or maturity, but said it was expected to open in early February. Fonterra said it planned to use the money for general business purposes. This bond issue is the latest in a slew of corporate and local government retail bond issues that are designed to take advantage of increased demand for investors looking for higher yields from big corporate names than the plummeting rates offered by banks. It is also giving these corporate bond issuers another avenue, given pension fund demand has dried up in the rush to put money into guaranteed bank accounts. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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