Diary co-op giant, Fonterra is raising NZ$150 million (US$100 million) through an offer of March 2023 senior fixed rate bonds to institutional and retail investors prior to a $150 million debt maturity next month, according to interest.co.nz.

The proceeds from the offer, which opened February 22 and which will be managed by lead manager, Australia and New Zealand Bank (ANZ) and co-managed by Deutsche Craig, will be used for “general corporate purposes” according to Fonterra’s director of capital markets, Simon Till.

The bonds, which are scheduled to mature in March 2023, will be quoted on the New Zealand Stock Exchange Debt Market from March 8 and are expected to open with an indicative margin of between 1.45% and 1.60% per year, according to the Irish Farmers Journal. They are expected to be assigned a long-term credit rating of A- by Standard and Poor’s and A by Fitch.

There is no public pool for the offer which is happening just when the seven-year swap rate recently stood at 2.97%, reports Farmers Weekly – almost its lowest point in two decades.

Following the book build process, the offer is scheduled to close on February 26. Investors who are interested are advised to contact the lead manager or co-manager, or their broker for more details.