January 4, 2022
FrieslandCampina repays US$61 million of member bonds-free
The executive board of Royal FrieslandCampina NV has decided to repay €54 million (US$61 million) of member bonds-free, the dairy cooperative announced last month.
By doing so, the company wants to facilitate a smooth transition to Zuivelcoöperatie FrieslandCampina UA's new member financing system that will become effective on January 1, 2022.
At the heart of the new member financing system is a link between a substantial part of the members' capital and the milk supplied by cooperative members. It has been agreed that, should there be any imbalance in the internal market for member bonds-free in future, the cooperative will solve the issue among members through a cooperative solution.
The new member financing will reduce the imbalance in contributed capital caused by an ageing population. By issuing milk certificates, the quality of FrieslandCampina's equity improves, the cooperative said.