Fonterra raises $207 million in dim sum bonds

Fonterra Cooperative Group, the world's biggest dairy exporter, raised 1.25 billion yuan ($207.61 million) in its second yuan-denominated bond on Tuesday.

The money raised will be used to pay off debt and expand operations in China, according to Fonterra. The funds will also be used to refinance some of Fonterra’s existing Chinese operations, it said.

The five-year bonds, which had an annual interest of 3.6 percent, were popular among global investors, especially those from Asia, the company said. Fonterra's first dim sum bond, which are bonds issued outside of China but denominated in the Chinese currency, was issued in 2011 and raised 300 billion yuan through the sale of three-year bonds with an annual interest of 1.1 percent that were oversubscribed on six occasions. The bonds will mature in June.

wuyiyao@chinadaily.com.cn