Fonterra yesterday launched a $A200 million ($NZ260 million) offer of five-year, Australian dollar-denominated bonds as it continues its policy of raising funds where it trades.
Late last month, the dairy co-operative successfully raised $US42 million ($NZ56 million) in renminbi-denominated bonds in China, with the issue heavily oversubscribed.
Price guidance on the Australian notes was 1.05% above the swap rate, lead managers ANZ Bank and Westpac said in a statement.
Fonterra held a roadshow with Australian-based fixed-income investors last month.
Craigs Investment Partners broker Chris Timms said Fonterra was diversifying its currency, mitigating potential future currency risks.
It made sense for the dairy co-operative to raise money where it had sales.
"The Australian issue is not big, reflecting how success-ful Fonterra has been recently in raising funds," Mr Timms said.
