Fonterra, a New Zealand-based dairy co-operative, has raised around NZD250m ($207m), under a five-year dim sum bond issue, in a move to develop its business in China.
The dim sum bonds have been issued as part of Fonterra Treasury's diversified funding strategy.
The funds raised are expected to be employed in the refinancing of the company's existing operations in China, including the expansion of its consumer, foodservice and farming operations.
Commenting on the transaction, Fonterra Greater China & India president Kelvin Wickham said that the co-operative has had a strong focus on driving growth in both volume and value as it develops its integrated business model in China.
"At the same time China is expected to see a continued gap between the demand and supply of raw milk so our farming business will continue to build supplies of quality raw milk to meet local consumer demand," added Wickham.
In addition, the company has launched its milk brand Anchor, as well as a new pediatric formula product, under the Anmum brand, in China.
