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Fonterra (ASX:FSF) has raised 1.25 billion Chinese renminbi through a five-year ‘dim-sum’ bond issue as part of its strategy to grow its China business.
CFO Lukas Paravicini says the funds raised from the dim sum bond issue will be used to strengthen the company’s business in China.
The growth plan includes the expansion of Fonterra’s consumer, food service and farming operations.
Fonterra says it has identified a continued gap between demand and supply of raw milk in China.
Fonterra delivered a net profit of $13.25 million in fiscal 2013.
