Dairy giant Fonterra is stepping up its expansion into China, announcing it intends to raise 300 million Chinese yuan, about NZ$56 million, through a bond issue denominated in renminbi currency.
It is the first time Fonterra has issued debt denominated in Chinese renminbi and the farmer-owned cooperative said it is the first corporate to tap the Hong Kong market in renminbi currency.
HSBC is the sole bookrunner and lead manager for the renminbi denominated bond issue.
Shanghai-based Fonterra China president Philip Turner said the funds raised from the CNH (Chinese yuan deliverable in Hong Kong) bond issue would support the growth of the company in China.
"Fonterra is growing very fast in China. We see huge potential to expand the breadth of products we offer in China, as well as the geographical distribution of our consumer brands and foodservice dairy products," Turner said.
Fonterra would also expand marketing, advertising and distribution of its consumer brands from seven cities to more than 15 in China in the next three years, he said.
"We are also exploring opportunities to produce and sell a range of premium, value-added dairy ingredients for key customers on the ground in China."
Fonterra is also developing a farm division in China to sell safe, quality milk to food-scare jittery Chinese.
Fonterra forecast that the China dairy market would triple in value to US$70 billion by 2020.作者: Devourment 时间: 2011-6-17 18:16:36
