Overview

Bank of China New Zealand provides a RMB 1.5 billion loan facility to Fonterra Co-operative Group for working capital purposess

Commitments (Constant USD, 2023)$246,210,059

Commitment Year•2016Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandOverseas Jurisdiction•New ZealandSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 15, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Bank of China (New Zealand) Limited (BOC New Zealand)

Receiving agencies

Private Sector

Fonterra Co-operative Group Limited

Loan description

Bank of China New Zealand provides a RMB 1.5 billion loan facility to Fonterra Co-operative Group for working capital purposess

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 15, 2016, it was announced that the Bank of China (New Zealand) Limited (BOC New Zealand) signed a RMB 1.5 billion ($300 million NZD; $216.36 million USD) multi-currency facility agreement with a New Zealand dairy co-operative known as Fonterra Co-operative Group Limited. The facility included an RMB-denominated tranche and was for working capital purposes, including increasing Fonterra's flexibility in funding its operations in China. Fonterra Co-operative Group Limited is New Zealand’s largest company and the world’s largest exporter of dairy products. This facility was reportedly the first of its kind in New Zealand.