Oversubscription leads to tighter price on Fonterra's Dim Sum debut [UPDATED]
- Friday, 17 June 2011
The coupon on Fonterra's (A+/AA-) debut in the Dim Sum market – which was also the first such bond to be placed by an Australasian corporate issuer – was tightened by 10 basis points on the back of nearly six times oversubscription, sources familiar with the deal say. While transaction size was limited by the scale of Fonterra's mainland China operations, the issuer expects the market to grow substantially in the coming years.
