Fonterra Co-operative Group Limited announced it is offering up to NZ$100 million (US$69.9 million) of bonds, with the ability to accept up to NZ$50 million (US$34.9 million) oversubscriptions, on Thursday February 18, 2010. 

The offer will close on March 3, 2010. 

The unsecured fixed rate senior bonds will have a six year maturity to March 4, 2016. The minimum investment is NZ$5,000 and multiples of NZ$1,000 thereafter. The interest rate for the bonds will be announced on Wednesday February 17, the day before the offer opens. 

A Simplified Disclosure Prospectus for the offer has been registered and is available for download at the Fonterra website. Applications for bonds will not be accepted until the offer opens.

Fonterra has mandated ANZ, part of ANZ National Bank Limited; BNZ; and Westpac Institutional Bank, a division of Westpac Banking Corporation, as Joint-Lead Managers for the bond offer.

On January 20, 2010, Fonterra announced it was considering a bond offer of up to NZ$250 million (US$174.6 million). The offer size has been scaled back to a maximum of NZ$150 million (US$104.8 million) as Fonterra has been able to cover part of its financing requirements overseas at a very attractive funding cost. 

Fonterra intends to use any money raised for general business purposes, including partial replacement of a EUR300 million (US$413.4 million) Euro Medium Term Note (EMTN) maturing in April 2010.