November 15, 2012

China Investment Corporation (CIC) is in negotiations to invest in a fund by New Zealand's dairy processor, Fonterra.

CIC, China's sovereign wealth fund, is considering an initial investment of less than US$100 million.

Fonterra, a co-operative owned by about 10,500 farmers, launched the NZD525 million (US$430 million) fund last month, hoping to lure investors with an expected yield of up to 7%. Pricing is slated for November 27.