Fonterra bonds given ratings in line with parent company

Ratings agency Standard and Poor’s has assigned a rating of A+ for the bonds issued by Fonterra’s Australian subsidiary in the wake of a $A300 million ($NZ388.3 million) issue of corporate bonds.

The bonds are for a five year term, maturing in July 2016, and were priced at a spread of 100 basis points over the Australian five-year swap rate.

Another agency, Fitch, has given the bonds an AA-minus rating.

Both ratings agencies ranked the bond in line with their respective ratings for Fonterra Co-operative Group Ltd which guaranteed the issue.

The company has tagged the cash for refinancing bank debt in Australia.

The Australian bond issue followed Fonterra's sale of bonds on the Chinese currency bond market, raising 300 million yuan ($NZ56m) through an issue of RMB-denominated bonds.

NZPA

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained